The Securities and Exchange Commission (SEC) case involving the Villar group could become a defining moment for Philippine market regulation, according to Luna Securities chairperson and co-founder John Gatmaytan.
Gatmaytan said the case would be closely watched as a measure of whether regulators are willing to pursue high-profile cases with real consequences, stressing that the issues remain unproven.
“It will be a precedent-setting,” Gatmaytan said, emphasizing that the claims are still “allegations pa lang” and “hindi pa proven until now.”
He added that the outcome would signal regulatory resolve.
“I think this is a litmus test for the SEC and PSE to make it right,” Gatmaytan said, referring to the Philippine Stock Exchange.
In the same interview, Gatmaytan pointed to long-standing gaps in valuation and market surveillance that he said should have been scrutinized earlier, citing instances where market values surged far beyond asset fundamentals.
He also raised concerns about insider trading rules, including “blackout” periods around material disclosures, amid allegations of trading during restricted windows.
According to Gatmaytan, the issues exposed by the case extend beyond a single company and highlight broader weaknesses in the country’s regulatory framework.
“Some of the rules may not be applicable given the times,” he said, calling for a review of the SEC’s charter and updates to rules and monitoring systems to strengthen enforcement.
The case comes amid renewed investor caution following past market controversies, including the BW Resources episode, the Calata case, the Abra Mining controversy, and more recently, scrutiny surrounding the Villar-linked Medilines Distributors Inc. listing.