PHTwo long-serving Philippine Stock Exchange (PSE) broker directors, Eddie Gobing and Vivian Yuchengco, have filed a petition with the Court of Appeals challenging the Securities and Exchange Commission's (SEC) new rule imposing term limits on broker directors. The SEC's Memorandum Circular No. 17-2026 sets a cumulative 10-year term limit for broker directors, with penalties of PHP1 million per year and PHP30,000 per month for violations. The petition argues the rule violates due process and equal protection clauses of the constitution and exceeds the SEC's statutory authority. Gobing and Yuchengco, who have served over 20 years each at the PSE, claim the rule represents a grave abuse of discretion. Under the new rule, broker directors can serve a maximum of 10 years cumulatively, with a mandatory one-year cooling-off period after five years of service, whether continuous or intermittent.
Bias read (Conservative): The article frames the challenge to the SEC rule as a constitutional and legal issue, emphasizing the alleged overreach of regulatory authority. While the petition itself is presented neutrally, the focus on the SEC's 'grave abuse of discretion' and the argument that the rule violates due process is
