CMIC lifts suspension on Globalinks
Now with enough capital to continue operating, broker-dealer Globalinks Securities and Stocks Inc. may resume operations. This, after the market regulation arm of the Philippine Stock Exchange lifted Globalinks’ involuntary suspension.
In a memorandum on Tuesday, Capital Markets Integrity Corp. (CMIC) said it had received documents from Globalinks. These showed proof of capital infusion.
As a result, CMIC lifted the involuntary suspension imposed on Globalinks. The lifting took effect on Tuesday.
The 34-year-old stock brokerage house was suspended on July 9 “due to continuing breaches” of capitalization requirements, according to CMIC.
Globalinks’ access to the trading system of PSE, the online depository system of the Philippine Depository and Trust Corp. and clearing facilities of the Securities Clearing Corp. of the Philippines was subsequently restricted.
Now that it was allowed to resume operations, Globalinks still needed to ensure that it consistently followed the minimum capitalization requirement, CMIC noted.
“Should there be any subsequent findings showing that the above rules have been infringed by Globalinks, the proper disciplinary actions shall be meted out by CMIC to the trading participant,” CMIC president Gerard Sanvictores said in their memo.
Under current rules, securities brokers need to have a minimum paid-up capital of P5 million. Meanwhile, new brokers wishing to register are required to have at least P100 million.
In August, CMIC similarly suspended Mount Peak Securities (MTPeak) for failing to comply with capital requirements “and other securities laws.”
MTPeak was established in 1975 and one of the pioneer members of the Makati Stock Exchange Inc. before its merger with the Manila Stock Exchange.
It was ordered to immediately inform its clients of the involuntary suspension. Clients may request for the transfer of their securities to a brokerage of their choice, or execute done-through sell transactions subject to the approval of CMIC.
