SEC reminds listed firms of disclosure duty after Global Ferronickel chair’s arrest

The Securities and Exchange Commission (SEC) last week reminded publicly listed companies of their obligation to disclose material information to investors following the arrest of Global Ferronickel Holdings Inc. chairman Joseph Sy at the Ninoy Aquino International Airport on Aug. 21 over alleged misrepresentation of citizenship.

“Given Mr. Sy’s role as chairman of a publicly listed company, the SEC is closely monitoring the matter and will evaluate whether any actions are warranted under its jurisdiction,” the Commission said in a statement.

Citing Rule 17.1.1 of the Implementing Rules and Regulations of the Securities Regulation Code and the Philippine Stock Exchange’s Consolidated Listing and Disclosure Rules, the SEC stressed that listed companies must disclose all information about the firm and its officers that “may influence investors’ decisions.”

The SEC said any action it may take will be consistent with its mandate to promote transparency and protect investor confidence, particularly in matters affecting the governance of publicly listed firms.

Meanwhile, the Philippine Nickel Industry Association (PNIA) called for Sy’s immediate release, saying he was “unlawfully arrested” by the Bureau of Immigration (BI) despite being affirmed as a Filipino citizen in two separate BI rulings.

PNIA said Sy’s continued detention “on mere suspicion of being an alien” is a violation of due process and sends the wrong message to the investment community at a time when the country is trying to boost confidence in the mining sector.