Republic Act No. 10881 was passed into law on July 17, 2016 amending the limitations on foreign investments or participation in certain activities listed in the Foreign Investment Negative Lists.
The law provides that no person, partnership, association, or corporation shall act as an adjuster unless authorized so to act by virtue of a license issued or renewed by the Commissioner of the Insurance Commission.
A lending company may be owned up to one hundred percent (100%) by foreign nationals. On the other hand, 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 the law.
Further, 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.
Nothing in the law precludes the Bangko Sentral ng Pilipinas from exercising its powers and authorities over financing companies, lending companies and investment houses pursuant to existing laws.
For more information, you may contact us at info@narplaw.com or at 09063731095