The Philippine Stock Exchange said stockbrokerage companies that may have helped former employee Jose Cecilio Peñaflor in his alleged investment scam will also be meted sanctions by the local bourse.
The PSE said in a statement its investigation would try to determine whether individuals, especially agents and salesmen, tagged in the complaints might have used their position to help Peñaflor perpetrate the investment scam. The exhange added that it would also investigate if the stockbrokerage firms they represent were aware of their actions.
“We want to find out if our rules and regulations were violated not just by individuals but stockbrokerage firms as well. If our investigation shows that rules were breached, we will mete out the applicable sanctions,” said PSE president and chief executive officer Hans Sicat.
The PSE has called on potential victims of investment solicitation scams to approach the exchange.
“We are getting a better picture of what may have transpired given the accounts and reports of complainants. We encourage other victims to also come out because the sooner they report their case, the better for everyone concerned,” Sicat said.
The PSE did not name the stockbrokerages covered by its investigation but Peñaflor was allegedly connected with several brokerage companies.
Peñaflor reportedly misrepresented himself as a broker and capital markets expert and started pooling capital from investors which reportedly reached P300 million.
He allegedly duped the investors by promising them guaranteed returns on their investments.
The PSE reminded potential stock market investors to open their own account with PSE-accredited brokerage firms and transact only with employees of their chosen broke. The exchange asked the public to be wary of investment solicitations offering share prices at discounted prices. Some of these schemes may include offering supposed shares of employee stock option plans.
The PSE said the public should never believe in solicitations for stock market investments that guarantee returns on investment.
“While the Philippine stock market has provided compelling returns in the past years due to the positive corporate and the country’s economic performance, the public must understand that share price movements cannot be guaranteed,” the PSE said.