The Securities and Exchange Commission (SEC) and the Philippine Competition Commission (PCC) have officially solidified their partnership through a comprehensive Data Sharing Agreement (DSA) focused on Beneficial Ownership (BO) information.
The agreement marks a critical milestone in the government’s efforts to enhance corporate transparency, curb anti-competitive behavior, and protect the integrity of the Philippine economy.
The formal signing ceremony, held at the SEC Headquarters in Makati City, was led by the heads of both regulatory bodies. This collaboration establishes a seamless framework for the exchange of critical data, allowing the PCC to access the SEC’s extensive BO database to identify the natural persons who ultimately own, control, or benefit from corporate entities.
By integrating BO data into competition investigations, the PCC can more effectively detect hidden concentrations of market power and interlocking directorates that may stifle innovation or lead to price manipulation.
“Transparency is the bedrock of a fair marketplace,” said SEC Chairperson Francis Lim. “By sharing beneficial ownership information with the PCC, we are dismantling the veils of anonymity that can be used to circumvent competition laws. This is about ensuring that the rules of the game apply to everyone, regardless of how complex their corporate structures may be.”
The DSA is designed to streamline inter-agency workflows and bolster enforcement capabilities through:
Enhanced Mergers & Acquisitions Review: Enabling the PCC to conduct deeper due diligence on the ultimate parent entities involved in transactions.
Cartel Detection: Identifying common ownership across supposedly competing firms to uncover potential collusive behavior.
Resource Efficiency: Reducing administrative hurdles by automating and securing the data-transfer process between the two agencies.
Global Compliance: Aligning Philippine regulatory standards with international best practices for Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF).
Both agencies emphasized that while the agreement facilitates robust data exchange, it remains strictly compliant with the Data Privacy Act of 2012. Strict protocols have been established to ensure that all shared information is handled with the highest level of confidentiality and used solely for legitimate regulatory and enforcement purposes.
The PCC Chairperson Michael Aguinaldo said: “This synergy allows us to see the full picture of market dynamics. Understanding who truly controls a company is essential for preventing monopolies and ensuring that Filipino consumers benefit from a truly competitive environment.”
This partnership underscores a unified government approach to fostering a predictable and transparent business climate, encouraging both local and foreign investment by ensuring a level playing field.
