BIZ BUZZ: Yuchengco not ready to give up her seat
A simmering clash between regulators and market insiders is starting to spill into the open.
Vivian Yuchengco, director of the Philippine Stock Exchange (PSE), has pushed back against a draft circular from the Securities and Exchange Commission (SEC) that would impose term limits on broker-directors—a move aimed at strengthening governance.
For Yuchengco, however, the issue strikes at ownership rights.
“We are owners. We are shareholders. So, no matter what, we sit on the board. You cannot limit us,” she said, arguing that broker-directors hold their seats by virtue of equity stakes—an arrangement rooted in the PSE’s structure even after demutualization.
The stakes are real: Four of the five current broker-directors could be affected, including two who have served for over 20 years.
And Yuchengco isn’t backing down.
“I will let the lawyers fight with them. But as long as I am still able, then I will fight,” she said, noting she had previously sued—and won against—the SEC.
She also questioned the inclusion of independent directors in the proposed limits, citing a limited talent pool.
“Independent directors are very hard to find … Why do you have to fix something that is not broken?” she said, adding that regulators should instead address weak market liquidity and restrictive provisions in the Securities Regulation Code.
SEC Chair Francis Lim, for his part, stood firm but is open to feedback.
“As far as I’m concerned, term limits are non-negotiable. But I’m still listening to their comments,” Lim said, while stressing that shareholders’ voting rights remain intact.
For now, the proposal remains in draft form, with stakeholders given a 15-day window to weigh in.
The final call will rest with the commission en banc—a process Lim said would involve a thorough review of all submissions.
Still, the early exchanges suggest this won’t be a quiet consultation.
If anything, the buzz is getting louder—and the outcome could reshape not just board tenures, but the balance between regulation and ownership in the local bourse.
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