THE Philippine Stock Exchange (PSE) is backing the Securities and Exchange Commission’s (SEC) call for more transparency in trade reports amid the forced closure of R&L Investments Inc. after one of its employees stole P700 million.
“We’re talking about NoCD (Name on Central Depository),” PSE President and Chief Executive Officer Ramon Monzon told reporters on the sidelines of an event in Makati City on Wednesday.
Earlier this month, the SEC made the same statement, saying it was expecting for the full implementation of the NoCD facility of the Philippine Depository & Trust Corp. by the first quarter next year to “reinforce the controls and deter similar incidents from occurring in the future.”
Such mechanism would allow the identification of individual investors.
Currently, most securities are registered under “omnibus” accounts, which include all investor holdings.
“I’ve always espoused the belief that for risk management purposes, the depository should be under the exchange basically,” Monzon said.
The same practice is being observed, the PSE chief added, in Singapore, Malaysia, Thailand, Hong Kong and China.
“It is very important that there is one entity that has an oversight function for this, that you can have good risk management practices,” he shared.
Recently, SEC ordered Capital Markets Integrity Corp. (CMIC) — PSE’s independent audit, surveillance and compliance arm — to take over the operations of R&L Investments to protect the latter’s clients.
CMIC said earlier that it has begun the special audits of books and records of involved
The PSE unit is tasked to submit its report and recommendation to the SEC seven days from the conclusion of audit but not later than December 20.