MANILA — The Securities and Exchange Commission has opened its proposed amendments to mandatory training programs for directors and top executives of publicly listed companies for public comment. The updates consolidate outdated memorandum circulars into a single, forward-looking framework, according to the SEC.

Officials at the agency say the changes will bolster corporate governance across businesses. Publicly listed companies, public companies, registered issuers and accredited training providers all fall under the new scope. The draft introduces tougher accreditation for institutional training providers, or ITPs, and expands required topics to cover emerging priorities like environment, social and governance factors, or ESG.

First-time directors and key officers face a detailed curriculum. Mandatory subjects include the revised OECD Principles of Corporate Governance, the ASEAN Corporate Governance Scorecard, the Code on Corporate Governance and the Integrated Annual Corporate Governance Report. Trainees must also study ESG and sustainability reporting, board responsibilities, minority shareholder protections, financial oversight, audits, compliance, ethics and risks such as insider trading, short-swing transactions and conflicts of interest.

Related party transactions, director liabilities, confidentiality and competition law round out the list. Training programs must incorporate regulatory updates specific to a company’s sector, including recent policies from the SEC and the Bangko Sentral ng Pilipinas.

Follow-up sessions can build on these basics. They must suit the company’s specific needs and examine deeper into governance issues. Sessions can run onsite, online or in hybrid formats. Companies may handle training in-house or hire SEC-accredited ITPs.

Accreditation comes with fees. Processing costs range from P2,000 to P50,000, the SEC states. ITP accreditations would extend from three years to five. Resource speakers for ITPs need their own SEC approval, either through initial or renewal applications.

Compliance gets stricter teeth. Violations could trigger fines from P1,000 to P50,000. Repeat or serious offenders face suspension or revocation of accreditation after notice and a hearing.

The SEC emphasized quality control. Enhanced monitoring and documentation will ensure trainings deliver consistent, relevant content, officials said. This push aligns with broader efforts to elevate governance standards amid evolving business pressures.

Stakeholders have until a deadline set in the consultation notice to submit feedback. The agency expects the rules to take effect soon after finalizing them, pending board approval.