Regulators Suspend Local Stock Brokerage
The Capital Markets Integrity Corp. (CMIC), which serves as the market regulation arm of the Philippine Stock Exchange (PSE), has enacted an involuntary trading suspension on the local stock brokerage Mount Peak Securities (MTPEAK). The decision, effective August 13, was announced via a memorandum citing the firm’s failure to comply with crucial capital requirements and other securities laws. This action is a severe measure, effectively restricting the brokerage’s access to essential market infrastructure. As a result, MTPEAK is now barred from using the trading system of the PSE, the depository online system of the Philippine Depository and Trust Corp., and the clearing facilities of the Securities Clearing Corporation of the Philippines. The suspension of a firm with a long history, founded in 1975 and a pioneer member of the Makati Stock Exchange, underscores the seriousness of the regulatory breach and the firm stance being taken to enforce market rules.
Protecting the Interests of Clients and Investors
In the wake of the involuntary suspension, the CMIC has moved quickly to safeguard the interests of Mount Peak Securities’ clients. According to CMIC president Gerard Sanvictores, the regulatory body has issued a directive to the brokerage, compelling it to immediately inform all of its clients about the suspension and its consequences. This is a critical step to ensure full transparency and provide clients with the necessary information to protect their assets. During the suspension period, affected clients are being given a clear pathway to security, with the option to request the transfer of their securities to a brokerage of their choice. Furthermore, clients are permitted to execute “done-through sell transactions,” which allows them to liquidate their holdings, subject to the CMIC’s express approval, ensuring that their financial interests are not held hostage by the firm’s regulatory non-compliance.
Upholding Capital Market Integrity and Compliance
The involuntary suspension of Mount Peak Securities serves as a powerful reminder of the stringent compliance standards required to operate within the Philippine financial system. The CMIC’s mandate is to ensure the integrity of the capital markets and protect the investing public by strictly enforcing rules and regulations. The failure to meet capital requirements, which are designed to ensure a brokerage’s financial stability and ability to meet its obligations, is a serious violation that necessitates swift regulatory action. This move reinforces the PSE’s commitment to maintaining a fair and orderly market for all participants. By taking decisive action against firms that fail to adhere to these foundational rules, the regulatory body sends a clear message to all trading participants that compliance is not optional and is a cornerstone of public trust and market stability.
