Investment House Association of the Philippines (IHAP) was established
on July 19, 1974 as a non-stock, non-profit organization. Its primary
objective is to promote a better understanding of the role and functions
of investment houses and to enhance their contribution to the growth
of Philippine business and the economy particularly through the
development of the capital market.
IHAP was set up following
the enactment of the Investment House Law under Presidential Decree
(PD) No. 129 in 1973. The Law defines investment houses as enterprises
engaged in the underwriting of securities of other corporations.
Investment houses may be allowed to perform quasi-banking functions
by the Monetary Board.
are subject to regulation by the Securities and Exchange Commission.
Those with quasi-banking license are further supervised by the Bangko
Sentral ng Pilipinas.
Republic Act No.
8366, which took effect in 1997, amended certain sections of the
Investment House Law on citizenship and capital requirement. The
foreign ownership requirement of investment houses was increased
to a maximum of sixty percent (60%) of the voting stock. The minimum
paid-in capital for Investment houses was raised to P300 million.
Since the enactment
of PD 129, the investment banking industry has continued to figure
prominently in the development of the Philippine capital market.
Specifically, investment houses have provided a wide range of financial
and advisory services such as issue management and underwriting
of public offering of debt and equity securities, loan syndication
and financial packaging and advisory for corporate mergers, acquisitions