Regulatory Alerts2026-05-21
SEC Memorandum Circular No. 17, Series of 2026: Term Limit of Broker Directors of an Exchange
The Securities and Exchange Commission issued Memorandum Circular No. 17, Series of 2026, to establish term limits and cooling-off periods for Broker Directors elected to the Board of an Exchange. The regulation caps cumulative service at ten years, requiring a one-year cooling-off period after five years of service, and allows re-election for a fresh five-year term thereafter. Non-compliant exchanges face penalties of one million pesos per director per year and potential license suspension for repeated violations.
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