Financial Market Regulation and Intermediation Program

Program design should focus on mplementing reforms not only where commitment is strong, but where resources and external factors are adequate to ensure successful implementation. In the case of the Securities and Exchange Commission (SEC), a persistent and chronic shortage of funding initially compromised its ability to provide effective surveillance and supervision to the capital markets. Additional budget increases still appear necessary to bring Office of the Insurance Commission and SEC remuneration in line with the Bangko Sentral ng Pilipinas, as mandated by Republic Act No. 8799 and Republic Act No. 9829. Further, until enforcement officials are sufficiently protected from frivolous and intimidating lawsuits, expectations of strong enforcement actions may be unrealistic.