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

ByJustpaste.in

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.

Gobing and Yuchengco also want the CA to order the SEC to stop implementing the circular dated May 21, 2026.

The broker directors filed a petition for certiorari and prohibition, which is used to seek a review of another body’s decision or ruling.

“Petitioners submit that the imposition of maximum term limits for Broker Directors of the PSE – the only Exchange in the Philippines – was attended with grave abuse of discretion amounting to lack or excess of jurisdiction on the part of the SEC,” the petition read. “The Assailed Circular violates the due process and equal protection clause of the Constitution and is ultra vires or beyond the limits of the authority conferred on the SEC by its enabling statutes.”

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PSE is a self-regulatory body that ensures “a fair, efficient, transparent and orderly market for the buying, and selling of securities.”

Gobing has a cumulative term of 27 years with the PSE, while Yuchengco has 29 years.

Before the SEC memorandum, broker directors of exchanges may hold their positions as long as they are duly elected by the stockholders.

Under the new SEC rules, broker directors may be elected for a term of only a year, with a maximum of 10 cumulative years. But the one decade period cannot be served continuously.

After serving five years, either consecutive or intermittent, a broker director shall have a one-year cooling-off period before they can be reelected again.

The SEC memorandum cites a principle of the International Organization of Securities Commissions which states that “the length of board members’ terms of office would be relevant in assessing shareholders’ ability to participate actively in the nomination and election of board members.” – Rappler.com

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    Govt raises fuel prices as petrol pump strike thre…

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    The federal government has increased the prices of petrol and high-speed diesel, while petrol pump owners have announced a nationwide strike after failing to reach an agreement with the government over the newly introduced daily fuel pricing system. Under the latest notification, the price of high-speed diesel (HSD) has increased by Rs7.15 per litre, rising from Rs360.06 to Rs367.21. The price of petrol has also been increased by Rs4.93 per litre, taking it from Rs315.80 to Rs320.73. The revised prices came into effect on July 22. The increase follows the government’s decision to replace the previous fortnightly fuel price adjustment system with a daily pricing mechanism. Under the new policy, petroleum prices can now change every day depending on international oil prices and fluctuations in the exchange rate. The new pricing mechanism has been strongly opposed by petrol pump owners and fuel dealers. They argue that daily price revisions are difficult to implement and create financial uncertainty for retailers across the country. After negotiations with government officials failed, the All Pakistan Petrol Pumps Owners Association (APPPOA) announced an indefinite nationwide strike beginning at midnight on Wednesday. The association said petrol pumps across Pakistan would remain closed until the government accepts its demands. Association leaders said discussions with the Petroleum Ministry failed to resolve major issues, including dealer profit margins and the implementation of daily fuel pricing. They insisted that the current system is not practical for petrol station operators and would create serious operational challenges. The Petroleum Retailers Association has also expressed support for the strike, raising concerns about possible disruptions in fuel supplies if the dispute continues. Meanwhile, the All Pakistan Petroleum Dealers Association (PPDA) is expected to decide whether it will formally join the protest. The association has called a meeting of its executive committee to discuss the situation and determine its future course of action. PPDA officials said they had already shared their concerns with the Oil and Gas Regulatory Authority (OGRA). According to the association, the regulator requested additional time to present the dealers’ concerns to the government before any final decision is made. Fuel dealers believe daily price changes make it difficult to manage inventories, update fuel prices, and maintain smooth business operations. They argue that the previous fortnightly pricing system provided greater stability and reduced uncertainty for both retailers and consumers. The government, however, maintains that the daily pricing mechanism will ensure that domestic fuel prices more closely reflect changes in global oil markets. Officials believe the new system will improve transparency and allow quicker adjustments to international price movements.

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