Philippine Equity Strategy: Market reform agenda gains momentum

Research evidence excerpt

Philippine Equity Strategy: Market reform agenda gains momentum

Global Research

24 July 2026ab

Philippine Equity Strategy Equity Strategy

PhilippinesMarket reform agenda gains momentum

John Te, CFA

Analyst

PSE and SEC advance market structure reforms john.te@ubs.com

+632-8784 8814

We hosted the PSE and met with the SEC to discuss reforms aimed at improving liquidity,

broadening retail participation, and aligning market practices with international

standards. These efforts are relevant given the steady decline in foreign investor

participation. While less extensive than reforms in Korea and Japan, they represent a

constructive step forward. Below, we summarize key passed and proposed reforms in

2025–26.

Completed reforms lower friction and strengthen governance

The PSE added three new board members with backgrounds in capital markets,

academia, and AI/technology. Separately, the SEC imposed a cumulative 10-year

term limit for PSE directors representing brokerage firms. (Jul 2026)

The PSE revised index eligibility criteria to better align with MSCI Asia

methodology. Beyond ADTV rankings, liquidity assessments now consider trading

activity relative to free-float market capitalisation. Companies with at least P250bn

(US$4bn) market capitalisation may qualify with a 15% free float versus the

standard 20%, provided all other criteria are met. (Jul 2026)

The SEC also imposed a maximum 9-year cumulative term for independent

directors of listed companies. (Jan 2026)

The SEC expanded eligible REIT assets to include infrastructure, data centres,

energy, and ICT assets, while allowing ownership through SPVs and joint ventures.

The sponsor reinvestment period was also extended to two years. (Jan 2026)

The SEC filed criminal complaints against a listed company and its officers for