AN ACT LIBERALIZING THE PHILIPPINE INVESTMENT HOUSE INDUSTRY
Download as PDF
Download as Word
Collections
Create new Collection
Overview
Full Text
Details
Case
Agency Issuance Number
Published Date
AN ACT LIBERALIZING THE PHILIPPINE INVESTMENT HOUSE INDUSTRY
Republic Act No. 8366
October 21, 1997
Case Overview and Summary
Summary of Republic Act No. 8366Liberalizing the Philippine Investment House Industry
- Declaration of Policy (Section 1):
- The State aims to expand and strengthen the capital base of the economy to ensure sustained economic growth and development.
- The Philippine investment house industry is liberalized to increase foreign equity participation and raise minimum capitalization to meet market demands.
- Citizenship Requirements (Section 2):
- At least 40% of the voting stock of any investment house must be owned by Filipino citizens. (Sec. 5)
- Foreign equity applications will be approved by the Securities and Exchange Commission (SEC) only if similar rights are enjoyed by Philippine nationals in the applicant's country. (Sec. 5)
- Foreign nationals can become members of the board of directors to the extent of their participation in the equity. (Sec. 5)
- Capital Requirements (Section 3):
- Minimum paid-in capital for newly-organized investment houses is ₱300,000,000. (Sec. 8)
- Existing investment houses must build up their paid-in capital to ₱300,000,000 within 2 years: ₱200,000,000 after the law's effectivity and an additional ₱50,000,000 for every year thereafter until the minimum is attained. (Sec. 8)
- The Monetary Board may prescribe a higher minimum capitalization to promote stability and competitiveness. (Sec. 8)
- The Monetary Board shall prescribe a risk assets to capital ratio and other capital adequacy ratios within 6 months to protect the investing public. (Sec. 8)
- Effectivity (Section 4):
- The Act shall take effect 15 days from its publication in a newspaper of general circulation.
Amends
n/a
Amended by
n/a
Tags
Statutes
Republic Acts
investment houses
foreign equity participation
minimum capitalization
Philippine capital market
capital adequacy ratios
risk assets to capital ratio
voting stock
board of directors
citizenship requirements
Securities and Exchange Commission
Law
AN ACT LIBERALIZING THE PHILIPPINE INVESTMENT HOUSE INDUSTRY
Republic Act No. 8366
•October 21, 1997
Republic of the Philippines
Congress of the Philippines
Metro Manila
Tenth Congress
Republic Act No. 8366             October 21, 1997
AN ACT LIBERALIZING THE PHILIPPINE INVESTMENT HOUSE INDUSTRY, AMENDING CERTAIN SECTIONS OF PRESIDENTIAL DECREE NO. 129, AS AMENDED, OTHERWISE KNOWN AS THE INVESTMENT HOUSES LAW
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled::
Section 1. Declaration of policy. – It is the policy of the State to expand and strengthen the capital base of the economy in order to ensure sustained economic growth and development. Toward this end, the Philippine investment house industry is hereby liberalized, increasing foreign equity participation and raising the minimum capitalization of investment houses to enable them to meet the present and future demands of the market.
Section 2. Sec. 5 of Presidential Decree No. 129, as amended, otherwise known as the Investment Houses Law, is hereby further amended, to read as follows:
"Sec. 5. Citizenship requirements. – At least forty percent (40%) of the voting stock of...
Login to see full content
Amends
n/a
Amended by
n/a