Executive Secretary Paquito N. Ochoa Jr. said on Tuesday that the Palace had restored the administrative supervision of the Department of Finance (DoF) over the Securities and Exchange Commission (SEC) in an effort to strengthen the country’s financial system amid the global economic crisis.
At present, the SEC is supervised by the Department of Trade and Industry (DTI), but Executive Order No. 37, which President Benigno Aquino III signed on April 19, placed the regulatory commission under the wings of the DoF to ensure better coordination and effective implementation of strong and stable financial policies, Ochoa said.
“Given the global economic crisis, the administration intends to attain an effective implementation of policies for a strong and stable financial system that will lead to a financial sector that will be able to further economic growth and development of the country,” the Executive Secretary said.
EO 37 revoked Executive Order No. 800 issued in 2009, which removed the DoF as overseer of the SEC and placed it under the DTI to facilitate the coordination of policies and programs in the field of trade, industry and investment.
SEC was originally supervised by the Office of the President (OP) in accordance with Presidential Decree No. 902-A, or the SEC Reorganization Act, which granted additional powers to and placed the regulatory body under the administrative supervision of Malacañang in 1976.
In the year 2000, however, Executive Order No. 192 transferred the administrative supervision of the SEC from the OP to the DoF.
“In order to achieve our goal, efficient coordination in the financial sector must be ensured, thus, it is necessary and right to reinstate the administrative supervision of SEC to the DoF,” Ochoa explained. Ochoa said EO 37 shall take effect immediately upon publication in a newspaper of general circulation. ###