Legislative History
Entitled: AN ACT AMENDING FOREIGN OWNERSHIP RESTRICTIONS IN SPECIFIC LAWS GOVERNING ADJUSTMENT COMPANIES, LENDING COMPANIES, FINANCING COMPANIES AND INVESTMENT HOUSES CITED IN THE FOREIGN INVESTMENT NEGATIVE LIST, EXCEPT THOSE IN THE CONSTITUTION & FOR OTHER PURPOSES [ THIRD REGULAR SESSION, 16TH CONGRESS ] [ 2015 ] 12/3/2015 Prepared and submitted by the Committee on ECONOMIC AFFAIRS with Senator JOSEPH VICTOR G. EJERCITO as author per Committee Report No. 321, recommending its approval in substitution of SBN-2517; 12/8/2015 Committee Report Calendared for Ordinary Business; 12/8/2015 Sponsor: Senator JOSEPH VICTOR G. EJERCITO; 12/14/2015 Transferred from the Calendar for Ordinary Business to the Calendar for Special Order; 12/14/2015 Sponsorship speech of Senator JOSEPH VICTOR G. EJERCITO; 12/15/2015 Period of interpellation closed; 12/15/2015 Period of committee amendments closed; 12/15/2015 Period of individual amendments closed; 12/15/2015 Approved on Second Reading without Amendment; [ 2016 ] 1/7/2016 Printed copies were distributed to the Senators; 1/18/2016 Approved on Third Reading; 1/18/2016 In favor: (18) JUAN EDGARDO "SONNY" M. ANGARA, PAOLO BENIGNO "BAM" AQUINO IV, MARIA LOURDES NANCY S. BINAY, ALAN PETER COMPANERO S. CAYETANO, PIA S. CAYETANO, FRANKLIN M. DRILON, JOSEPH VICTOR G. EJERCITO, JUAN PONCE ENRILE, FRANCIS "CHIZ" G. ESCUDERO, TEOFISTO "TG" GUINGONA III, GREGORIO B. HONASAN II, MANUEL "LITO" M. LAPID, LOREN B. LEGARDA, SERGIO R. OSMENA III, AQUILINO KOKO III L. PIMENTEL, GRACE L. POE, VICENTE C. SOTTO III and ANTONIO "SONNY" F. TRILLANES; 1/18/2016 Against: N o n e ; 1/18/2016 Abstention: N o n e ; 1/20/2016 Sent to the House of Representatives requesting for concurrence; 2/1/2016 Senate requested the House of Representatives for a conference on the disagreeing provisions of SBN-3023 and HBN-6395, designating Senators Ejercito, Angara and Villar as its conferees to the Bicameral Conference Committee; 2/3/2016 House of Representatives informing the Senate that Representatives Del Rosario, Aggabao, Cua, Romualdo, Gutierrez and Tinio were designated as its conferees to the Bicameral Conference Committee on the disagreeing provisions of SBN-3023 and HBN-6395 on February 1, 2016; 2/3/2016 Conference Committee Report on the disagreeing provisions of SBN-3023 and HBN-6395, submitted to the Senate, recommending that SBN-3023 in consolidation with HBN-6395, be approved as reconciled; 2/3/2016 Sponsorship speech on the Conference Committee Report of Senator JOSEPH VICTOR G. EJERCITO; 2/3/2016 Conference Committee Report Approved by the Senate; (Transmittal letter sent to the House of Representatives on February 11, 2016); 5/23/2016 Conference Committee Report Approved by the House of Representatives; 6/16/2016 Enrolled copies of the consolidated version of SBN-3023 and HBN-6395, sent to the Office of the President of the Philippines through PLLO, for the signature and approval of His Excellency President Benigno S. Aquino III; FINAL TITLE: AN ACT AMENDING INVESTMENT ESTRICTIONS IN SPECIFIC LAWS GOVERNING ADJUSTMENT COMPANIES, LENDING COMPANIES, FINANCING COMPANIES AND INVESTMENT HOUSES CITED IN THE FOREIGN INVESTMENT NEGATIVE LIST AND FOR OTHER PURPOSES 6/30/2016 Enacted into Law without Executive Approval Pursuant to the provisions of Section 27(1), Article VI of the Constitution on July 17, 2016 and Became 6/30/2016 REPUBLIC ACT NO. 10881. (Pursuant to paragraph g, Sec. 7, Rule V of the Rules of the Senate, R.A.No. 10881 (SBN-3023/HBN-6395) with pertinent documents transmitted to the Legislative Records and Archives Service for safekeeping and preservation on August 9, 2016) (The legislative history/plenary deliberations is prepared by the INDEXING, MONITORING AND LIS SECTION, LEGISLATIVE BILLS AND INDEX SERVICE; The data entry re conducted committee meetings/hearings, conducted technical working group, is prepared by the Committee concerned/Committee Affairs Bureau)
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S. No. 3023 H. No 6395 ; Manila Bulletin (August 01, 2016); 112 OG No. 33, 5202 (August 15, 2016)
[ REPUBLIC ACT NO. 10881, July 17, 2016 ]
AN ACT AMENDING INVESTMENT RESTRICTIONS IN SPECIFIC LAWS GOVERNING ADJUSTMENT COMPANIES, LENDING COMPANIES, FINANCING COMPANIES AND INVESTMENT HOUSES CITED IN THE FOREIGN INVESTMENT NEGATIVE LIST AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: SECTION 1. Declaration of Policy. – It is the policy of the State to attract and promote investments from foreign individuals, partnerships, corporations and governments, including their political subdivisions, in activities that significantly contribute to industrialization. socioeconomic development and sustainable inclusive growth.Given the country’s development objectives and the need to increase investments to achieve these, amending the limitations on foreign investments or participation in certain activities listed in the Foreign Investment Negative List as provided for in specific laws, becomes necessary.SEC. 2. Definition of Investment. – As used in this Act, investment shall refer to equity participation in any enterprise organized or existing under the laws of the Philippines and duly recorded in the Stock Transfer Book, or its equivalent, of the enterprise.SEC. 3. Lifting of Nationality Requirements. – The nationality requirements for adjustment companies as provided in Presidential Decree No. 612, investment houses as provided in Presidential Decree No. 129, lending companies as provided in Republic Act No. 9474 and financing companies as provided in Republic Act No. 8556 are hereby repealed, subject to the provisions of this Act and the Constitution.SEC . 4. Adjustment Companies. – Section 332 of Presidential Decree No. 612, otherwise known as “The Insurance Code”, as amended by Republic Act No. 10607, is hereby amended to read as follows;
“SEC. 332. No person, partnership, association, or corporation shall act as an adjuster, as herein earlier defined, unless authorized so to act by virtue of a license issued or renewed by the Commissioner pursuant to the provisions of this Code.
" SEC. 5. Lending Companies. – Section 6 of Republic Act No. 9474, otherwise known as the “Lending Company Regulation Act of 2007”, is hereby amended to read as follows;
“SEC. 6. Citizenship Requirements. – A lending company may be owned up to one hundred percent (100%) by foreign nationals; Provided, however, That where the loan is secured by land, a lending company, more than forty percent (40%) of whose capital is owned by foreign nationals, may bid and take part in any sale of such land as a consequence of such mortgage, avail of enforcement proceedings, take possession, and transfer their rights to qualified Philippine nationals for a period not exceeding five (5) years from actual possession; Provided, further, That title to said land shall not be transferred to such lending companies; Provided, finally, That investments of a lending company shall be in accordance with the provisions of the Constitution.”
SEC.6. Financing Companies. – Section 6 of Republic Act No. 8556, otherwise known as the “Financing Company Act of 1998", is hereby amended to read as follows:
“SEC. 6. Form of Organization and Capital Requirements. – Financing companies shall be organized in the form of stock corporations, may be owned up to one hundred percent (100%) by foreign nationals, and shall have a paid-up capital of not less than ten million pesos (P10,000,000.00) in case the financing company is located in Metro Manila and other first class cities, five million pesos (P5,000,000.00) in other classes of cities and two million five hundred thousand pesos(P2,500,000.00) in municipalities: Provided, That the Securities and Exchange Commission may adjust said minimum paid-up levels as it deems warranted by its prudential oversight requirements and consistent with the objectives of this Act: Provided, however, That financing companies duly existing and in operation before the effectivity of this Act shall comply with the minimum capital requirement within one (1) year from the date of the said effectivity: and Provided, further, That where land is concerned, the financing company shall comply with the constitutional provision on foreign ownership of land.”
SEC. 7. Investment Houses. – Section 5 of Presidential Decree No. 129, as amended by Republic Act No. 8366, otherwise known as “The Investment Houses Law”, is hereby amended to read as follows:
“SEC. 5. Citizenship Requirements. – An Investment House may be owned up to one hundred percent (100%) by foreign nationals. Foreign nationals may become members of the board of directors to the extent of the foreign participation in the equity of said enterprise.”
SEC. 8. Regulatory Powers of the Bangko Sentral ng Pilipinas. – Nothing in this Act shall preclude the Bangko Sentral Ng Pilipinas from exercising its powers and authorities over financing companies, lending companies and investment houses pursuant to existing laws.SEC. 9. Separability Clause. – If any of the provisions of this Act is declared invalid, the other provisions not affected thereby shall remain in full force and effect.SEC. 10. Repealing Clause. – All statutory laws, orders, issuances, rules and regulations and/or parts thereof which are inconsistent with the provisions of this Act are hereby repealed or modified accordingly.SEC. 11. Effectivity. – This Act shall take effect fifteen (15) days after its publication in the Official Gazette or in a newspaper of general circulation.Approved,
(Sgd.) FELICIANO BELMONTE JR.Speaker of the House of Representatives | (Sgd.) FRANKLIN M. DRILONPresident of the Senate This Act which is a consolidation of Senate Bill No. 3023 and House Bill No. 6395 was finally passed by the Senate and the House of Representatives on February 3, 2016 and May 23, 2016, respectively.
Approved:BENIGNO S. AQUINO III President of the Philippines Lapsed into law on JUL 17 2016 Without the signature of the President, In accordance with Article VI, Section27 (1) at the Constitution Source: Supreme Court E-Library |
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