Court of Appeals asked to void SEC rule imposing term limits for broker directors

Nico Villarete/Rappler; images from SEC

Long-time PSE broker directors Eddie Gobing and Vivian Yuchengco want the SEC to stop implementing a May 21 circular on term limits

MANILA, Philippines – Long-time Philippine Stock Exchange (PSE) broker directors filed a petition with the Court of Appeals, challenging the Securities and Exchange Commission’s (SEC) rule that set term limits for broker directors.

SEC Memorandum Circular No. 17-2026 prescribes a cumulative 10-year term limit for broker directors, whether consecutive or intermittent. The memorandum prescribes a penalty of P1 million per broker per year, and a continuing penalty of P30,000 for every month that a broker director holds a seat in violation of the circular.

“[Declare] SEC MC No. 17, series of 2026 unconstitutional for violating Petitioners’ rights to due process and equal protection and VOID for being contrary to the Securities Regulation Code and Revised Corporation Code,” read part of the 56-page petition filed by Eddie Gobing and Vivian Yuchengco.