Law Summary

Introduction

Executive Order No. 192, issued by President Joseph Ejercito Estrada on January 7, 2000, formalizes the transfer of the Securities and Exchange Commission (SEC) from the Office of the President to the Department of Finance (DOF). This order is grounded in the President's authority under the Administrative Code of 1987.

Section 1: Transfer of the SEC

• Legal Principle/Provision: The SEC is officially transferred from the Office of the President to the DOF.
• Key Definitions Introduced:
  • Securities and Exchange Commission (SEC): The regulatory body overseeing the securities market in the Philippines.
  • Department of Finance (DOF): The executive department responsible for managing the government’s finances.
• Important Requirements/Procedures Outlined:
  • The DOF is tasked with the administration of the SEC post-transfer.
• Relevant Timeframes: The transfer is effective immediately upon the issuance of this Executive Order.

Section 2: Administrative Supervision by DOF

• Legal Principle/Provision: The DOF will assume administrative supervision over the SEC, including policy formulation related to capital market development and savings mobilization.
• Key Definitions Introduced:
  • Capital Market Development Policies: Policies aimed at fostering a robust capital market environment.
  • Savings Mobilization Policies: Strategies to encourage savings among the public.
• Important Requirements/Procedures Outlined:
  • The DOF must ensure that these policies align with Section 38, Chapter 7, Title III, Book IV of the Administrative Code of 1987.
• Cross-References to Other Laws:
  • This section references the Administrative Code of 1987, highlighting the continuity of authority regarding administrative structure.

Section 3: Severability Clause

• Legal Principle/Provision: Any portion of the Executive Order deemed unconstitutional will not invalidate the remaining provisions.
• Key Definitions Introduced:
  • Severability Clause: A legal provision that allows parts of a document to remain effective even if other parts are found unconstitutional.
• Important Requirements/Procedures Outlined:
  • The validity of remaining provisions is contingent on their ability to function independently.

Section 4: Revocation of Inconsistent Issuances

• Legal Principle/Provision: Any executive rules, regulations, or other issuances inconsistent with this Executive Order are revoked or modified.
• Key Definitions Introduced:
  • Inconsistent Issuances: Regulations or guidelines that conflict with the provisions of this Executive Order.
• Important Requirements/Procedures Outlined:
  • Entities must review their existing regulations to ensure compliance with the new order.

Section 5: Effectivity

• Legal Principle/Provision: The Executive Order takes effect immediately.
• Relevant Timeframes:
  • Immediate effectivity upon signing on January 7, 2000.

Key Takeaways

• The SEC is now under the administrative oversight of the DOF, which is responsible for relevant policy formulation.
• The Executive Order includes a severability clause ensuring the order's integrity in case of constitutional challenges.
• All conflicting regulations or issuances are revoked to maintain consistency with this Executive Order.
• The order is effective immediately, signaling swift implementation of the transfer.