Finance Secretary Carlos Dominguez said Friday the Duterte administration will no longer tolerate the actions of private institutions in thwarting the government’s goal of attaining a robust and inclusive financial system through the development of the country’s capital markets.

Dominguez was referring to the Philippine Stock Exchange (PSE), which has so far failed to comply with the provision of the Securities Regulation Code (SRC) on the allocation of their shares to other shareholders as condition for the approval by the Securities and Exchange Commission (SEC) of PSE’s plan to acquire the Philippine Dealing System Holdings Inc. (PDS).

“The development of the capital market is being slowed down by the PSE’s protracted compliance with the law. The Duterte administration will no longer tolerate private institutions thwarting the goal of achieving a robust and inclusive financial system,” Dominguez said in a statement.

Dominguez recalled that three months after President Duterte took office, he already told the PSE sometime in September 2016 to follow the law on the allocation of PSE shares to other shareholders so that it can comply with the 20 percent ownership limit of Exchanges and Exchange Controllers as mandated under the SRC. This was a requirement before the PSE could proceed with acquiring 100 percent of the outstanding capital stock of the PDS.

“As of now, 16 months later, they are not compliant,” Dominguez said.

The PDS, considered as an Exchange Controller, is the parent company of the Philippine Dealing & Exchange Corp. (PDEX), and the Philippine Depository and Trust Company (PDTC).

PDEX is the dealing exchange for fixed income securities while PDTC acts as depository and registry for participants for both fixed income and equity securities.