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SEC eyes probe of R&L Investments fiasco

The Securities and Exchange Commission wants Capital Markets Integrity Corp. to thoroughly investigate the reported theft that nearly wiped out the position of stock brokerage firm R&L Investments.

CMIC acts as the independent audit, surveillance and compliance arm of the Philippine Stock Exchange in line with its mandate to reinforce the confidence of the investing public in capital market institutions.

“The SEC expects CMIC to conduct a thorough investigation to unearth the truth behind the transactions in question, identify all parties involved, and uncover the extent of the damage to the stock brokerage, its clients and the overall market,” the corporate regulator said.

The SEC said the investigation should also provide clarity as to how such transactions could have slipped past multiple control measures.

The SEC noted that rules requires broker-dealers to conduct a monthly security examination, count and verification to account for discrepancies.

An R&L employee, identified as Marlo Moron, reportedly diverted P700 million worth of stocks to another broker and even eventually sold them. 

Meanwhile, SEC commissioner Ephyro Luis Amatong said in a separate text message the SEC would closely monitor the issue in parallel with CMIC probe.

As a self-regulatory organization, CMIC is tasked to enforce Republic Act No. 8799, or the Securities Regulation Code, and the pertinent rules and regulations. Among its powers and functions is to investigate and resolve violations by trading participants of the securities law as well as trading-related irregularities and unusual trading activities involving issuers.

Topics: Securities and Exchange Commission , SEC , R&L Investments
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