The Supreme Court (SC) on Friday was asked by the Philippine Stock Exchange and Bankers Association of the Philippines (BAP) to declare unconstitutional a move of the government to compel the PSE to divulge personal and other pieces of information on their stockholders.
In a petition for certiorari filed before the High Court, petitioners alleged that the regulation will jeopardize the privacy of indi-vidual investors and market stability in general.
Other petitioners are the Philippine Association of Securities Brokers and Dealers Inc., Fund Managers Association of the Philippines, Trust Officers Association of the Philippines and Marmon Holdings Inc.
Respondents to the case are the secretary of the Department of Finance (DOF), the Commis-sioner of Internal Revenue (CIR) and the Securities and Exchange Commission (SEC).
“Respondents, in the guise of tax administration, have je-opardized not only the stability of the Philippine capital market but also the liberty, properties, privacy and security of the market participants, which include the petitioners,” the petition read.
In particular, the PSE assailed DOF Revenue Regulation 01-14; Memorandum Circular 05-14 issued by the CIR; and SEC Memorandum Circular 10 issued by the SEC chairman.
Aside from the petition, the petitioners also pleaded before the SC to immediately issue a temporary restraining order and/or writ of preliminary injunction to stop the enforcement of the regulation and circulars.
They expressed fear that compliance with the regulation and circulars will open them to criminal suits since the regulation and circulars violate the right of investors to privacy under Republic Act 10173 or the Data Privacy Act.