Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
Third Regular Session 
House Bill No. ______ 
Introduced by REPRESENTATIVE JOY MYRA SALVADOR-
TAMBUNTING 
EXPLANATORY NOTE 
The Foreign Investment Act of 1991 has been enacted to liberalize 
foreign participation in the economic industry in the country. It contains 
Negative Lists A and B which contain the enumerated industries with limited 
allowable foreign participation in equity. Furthermore, based on its 
implementing rules and regulations, SEC or BTRCP, whichever is applicable, 
is in-charge of ensuring compliance with the equity requirements under the 
act. However, the possibility of overlapping and conflicting supervisory 
powers with other sector-specific regulatory agencies in monitoring 
compliance with the equity requirements was not then foreseen causing 
instability in the affected nationalized industries and going against the very 
purpose of institutionalizing a liberalized and systematized entry of foreign 
investments. 
This bill seeks to introduce a provision that mandates the SEC or BTRCP 
to exercise exclusive authority in determining the nationality of corporation 
and equity compliance provided under the Constitution and the law. 
Furthermore, this provision would also warrant that the findings of the said 
two agencies will be binding and conclusive as to other agencies. Also, this 
bill seeks to amend Section 12 of Republic Act No. 7042 as amended by 
Republic Act No. 8179 to mandate the SEC and the sector-specific regulatory 
agencies to coordinate whenever issues of nationality and equity compliance 
will arise.  
March 23, 2022
7:56 am
10826


On behalf of the people of Parañaque City’s Second District, and for the 
common good of the Filipino people, the approval of the said measure is 
earnestly sought.  
REP. JOY MYRA SALVADOR-TAMBUNTING 
2nd District, Parañaque City


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
Third Regular Session 
House Bill No. ______ 
Introduced by REPRESENTATIVE JOY MYRA SALVADOR-
TAMBUNTING 
AN ACT FURTHER AMENDING REPUBLIC ACT NO. 7042 AS 
AMENDED BY REPUBLIC ACT NO. 8179 OR AN ACT TO PROMOTE 
FOREIGN INVESTMENTS, PRESCRIBING THE PROCEDURES FOR 
REGISTERING ENTERPRISES DOING BUSINESS IN THE 
PHILIPPINES, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the 
Philippines in Congress assembled: 
SECTION 1. The Foreign Investment Act is further amended by inserting a 
new section designated as Section 12 to read as follows: 
“Sec. 12 Monitoring of compliance with Equity participation requirements. – 
The SEC or BTRCP, as applicable, shall exercise exclusive authority in 
monitoring the equity compliance provided in this act. The findings and 
recommendations of the SEC or BTRCP, shall be binding and conclusive to 
other regulatory agencies exercising concurrent supervisory powers over a 
specific nationalized industry. 
SECTION 2. Section 12, of Republic Act No. 7042 as amended by Republic 
Act No. 8179, is hereby renumbered as Section 13, and amended to read as 
follows: 
10826


“Section 13. Consistent Government Action - No agency, instrumentality or 
political subdivision of the Government shall take any action in conflict with, 
or which will nullify the provisions of this Act, or any certificate or authority 
granted hereunder. Sector-specific regulatory agencies, shall coordinate with 
the SEC or BTRCP to address possible circumvention of the requirements 
provided under this act. The SEC or BTRCP, are also in-charge to inform and 
coordinate with other regulatory agencies as regards equity compliance of 
entities engaged in nationalized industries under the latter’s concurrent 
supervisory powers.” 
 
SECTION 3. Separability Clause - If any part or section of this Act is declared 
unconstitutional for any reason whatsoever, such declaration shall not in any 
way affect the other parts or sections of this Act. 
 
SECTION 5. Repealing Clause – All other laws or parts of laws inconsistent 
with the provisions of this Act are hereby repealed or modified accordingly. 
 
SECTION 6. Effectivity – This Act take effect from fifteen (15) days after 
approval and publication in two (2) newspapers of general circulation in the 
Philippines.