Mid-term evaluation : capital markets development project, project no. 492-0447 -- Philippines : final report

The Philippine Securities and Exchange Commission (SEC) has implemented the public sector component, and the Financial Executives Institute of the Philippines (FINEX) the private sector component. TA has been provided by Arthur Anderson (AA). Mid-term evaluation covers the period 9/92-5/95. In terms of the public sector, the project is well-designed and is being implemented in a manner that should result in (1) a full disclosure system to replace or supplement the currently used merit regulation system; (2) market regulation systems that are managed by Self-Regulatory Organizations (SROs) such as the Philippines Stock Exchange (PSE) with SEC oversight responsibility; (3) effective SEC enforcement; and (4) a trading, clearing, settlement and depository system capable of satisfying global standards. Further, the AA consultants are at work on providing the Philippine capital market with just such an integrated regulatory system. If allowed to carry their recommendations forward as accepted by the SEC en banc (that is, using majority rule), the project should be successful. In terms of the private sector, work has progressed to provide: (1) a service company to operate an equity and debt market depository; (2) an organization to promote training, advocacy, and research and provide committee support services; and (3) a series of planned component completion activities which will provide fee revenues for sustainability of project outputs after the Project Assistance Completion Date (PACD). FINEX appears to have established a framework to complete the work, and an expanded well-managed project management office will promote sustainability. (Author abstract, modified)