The Insurance Commission (IC) welcomes the passage and implementation this month of a new law lifting foreign ownership limit in adjustment companies noting that this will make the Philippines comply with its commitments to the ASEAN Economic Community (AEC).
Republic Act No. 10881 entitled “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” will take effect on Aug. 16.
The R.A. No. 10881 now allows foreign nationals and 100-percent foreign ownership — in case of partnership, association and corporation — in adjustment companies.
“During the deliberations before both houses of the 16th Congress, the Insurance Commission expressed its full support to the lifting of foreign equity restriction with respect to adjustment companies as part of the country’s compliance with our commitments to the ASEAN Economic Community to open certain sectors of the economy,” said Insurance Commissioner Emmanuel F. Dooc.
“We welcome the passage of the law removing the restriction in foreign ownership equity in case of adjustment companies. With the passage of the law, we are expecting that this will make the insurance adjustment industry in our country attractive to foreign investors,” Dooc said.
He noted that the business of adjustment companies is the only activity under the Insurance Code which has foreign-equity restriction.
Previously, the country only allowed up to 40 percent foreign ownership in adjustment companies.
Source: Manila Bulletin