PSE chief leaves task of reforming bourse to successor

Francis Lim stepped down as Philippine Stock Exchange (PSE) president and chief executive officer on Monday, leaving the task of further reforming the bourse to his would-be successor after serving two terms — the longest in the exchange’s history. "The past years, while not exactly a walk in the park, have been very fulfilling both professionally and personally," Lim said in a statement, as he thanked the PSE board for his long stint as president. Lim announced last month that he would step down two months earlier than planned, a surprise move that has raised fresh questions about governance at the local bourse. His decision to quit came after the resignation of five senior executives of the exchange last year amid disagreements on reforms, particularly sanctions on listed companies that fail to make timely disclosures and brokers who fail to meet minimum capital requirements. The exchange's board is made up of influential stock brokers and company chief executives. Lim urged the board and his would-be successor to sustain corporate governance initiatives to help build and maintain investor confidence in the stock market. He has been pushing the separation of the regulatory and business functions of the exchange by spinning off the Market Regulation Division, which regulates brokers. He said a separate Issuer Regulation Division should be in charge of regulating listed firms. "The proposed segregation will meaningfully avoid the conflicts of interest inherent between a stock exchange and a listed company," Lim said. The exchange said Lim had spearheaded five landmark legislative reforms that seek to enhance investor participation in the stock market. Lim assumed office on September 15, 2004. Lim led efforts in capital market development, having succeeded in lobbying for the passage of laws that give incentives to personal retirement and real estate investment trusts. During his term, separate laws that exempt stock transactions from documentary stamp tax, set up a credit information system and speed up corporate rehabilitation were also enacted. "These fundamental market reforms, together with our inroads in capital market education, trading system upgrade, market integrity and corporate governance reform position our stock market for further growth and development," Lim said. — Norman P. Aquino, OMG GMANews.TV