6 brokers fined for SRC violation


THE Securities and Exchange Commission (SEC) penalized six brokerage firms for failing to comply with the requirements under the implementing rules and regulations (IRR) of the 2015 Securities Regulation Code (SRC).

In a statement, the SEC said six brokers were found not to have complied with the regulations.

These six are Equitiworld Securities Inc., First Orient Securities Inc., IGC Securities Inc., Regina Capital Development Corp., SJ Roxas & Company Inc., and The First Resources Management and Securities Corp.

These brokers are all trading participants of the Philippine Stock Exchange.

The SEC’s Markets and Securities Regulation Department has issued notices to the firms’ presidents and associated persons or compliance officers.

The letters pointed out that four brokers failed to submit new requirements under the 2015 SRC IRR which included risk management and internal control procedures; business continuity and disaster recovery plan; comprehensive information technology plan; updated written supervision and control procedures; and copies of proposed contracts of outsourced activities or services.

The penalties range from P30,000 to P60,000 and come with a warning of heavier sanctions in case the offenders continue to violate the regulatory requirements.

The SEC said the new requirements are intended to improve market structures, enhance investor protection and strengthen the anti-money laundering framework, which are all based on global best practices and standards as being done in leading markets.

The 2015 SRC IRR took effect on November 9 last year. Prior to implementation of the IRR, the capital markets regulator had extended the deadline to comply with the new requirements. The IRR was fully in force beginning March 10 this year.


Please follow our commenting guidelines.

Comments are closed.