BUSINESSES could be allowed to start commercial operations while permits from other government agencies are still being secured under a proposed executive order aimed at cutting red tape and speeding up business activity.
Securities and Exchange Commission (SEC) Chairman Francis Lim said the commission had proposed a “One Business Act” that would allow firms that have completed the corporate regulators’ requirements to begin operations while their applications with other government agencies are still being processed.
“Ease of doing business is still very high in our agenda,” Lim said during a press conference on Monday marking his first year as SEC chairman.
Lim said the proposal would address cases where a company has already been incorporated and secured its secondary license from the SEC but remains unable to start commercial operations because it is still completing requirements with other government agencies.
He cited permits and applications involving agencies such as the Social Security System as examples of processes that can delay the start of business activities.
The SEC has been coordinating with the Department of Finance on the proposal, which Lim said would require an executive order to implement.
“I believe that can be done only through an executive order,” he said.
The measure forms part of the SEC’s broader effort to streamline business registration and regulatory processes through automation and digitalization.
“We want to automate or digitalize almost everything,” Lim said, emphasizing the commission’s push to reduce human intervention in transactions.
The SEC is also pursuing reforms to make the capital market more accessible to companies seeking to raise funds.
Lim said the commission was seeing increased interest in the capital market following recent regulatory changes, including adjustments to public float requirements and other listing rules.
Among the companies preparing to tap the market is Mynt Inc., the parent of GCash, whose initial public offering is expected in the fourth quarter, subject to the submission of the necessary documents and compliance with SEC requirements.
SEC Commissioner McJill Bryant Fernandez said the regulator was expecting to issue the necessary authorizations and pre-effective letters in the coming weeks, subject to the companies’ submission of the required documents, including financial statements.
The SEC is also looking at government-owned corporations and enterprises as potential sources of new listings as part of efforts to broaden the local capital market.
Lim said the commission’s broader approach was to remove unnecessary regulatory barriers while maintaining investor protection.
It is likewise preparing separate regulatory frameworks for equity and fixed-income securities, with revised rules targeted for release in September.
