In a bid to make investments in capital markets more attractive to Filipinos, the Philippine Stock Exchange (PSE) is currently spearheading some “capital market-friendly” projects and schemes.
The Personal Equity Retirement Account (PERA), which allows tax-free pension plans, has already been approved by a bicameral committee in Congress last June 10. It is widely expected to boost efforts to further enhance the Philippine capital markets as it will create a market for issuers of corporate debts and other investment instruments. The PERA Fund functions like a trust fund where the consolidated amount contributed by fund members will be invested in a portfolio of secured investments, wherein each contributor is entitled to a maximum of Php100,000 in contributions annually.
Another Congress-approved bill lobbied for by the PSE is the Credit Information System Act, which aims to establish an efficient, comprehensive and centralized credit information system.
The PSE also works on the approval by Congress of the Corporate Recovery and Insolvency Act (CRIA), which will replace the country's antiquated Insolvency Law. This proposed bill aims to provide a new lease on life for listed companies and brokers with financial difficulties.
The Real Estate Investment Trust (REIT) is also another proposed measure that aims to accelerate the development of capital markets. The scheme works like a mutual funds whereby a large portion of a pool of capital would be invested in income-generating real estate properties and investments.
Another similar proposal is the Collective Investment Schemes Law which aims to further promote collective investments schemes, like unit investment trust funds (UITF), by streamlining regulation.
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