PSE’s CMIC suspends Mount Peak Securities
Another long-running local stock brokerage house, one of the pioneers of the old Makati Stock Exchange, has been barred from the Philippine equities market due to capital inadequacy.
In a memorandum dated Aug. 13, the Capital Markets Integrity Corp. (CMIC) issued an involuntary suspension order to Mount Peak Securities (MTPeak) that took effect on the same day.
This is the second brokerage house to be involuntarily suspended this year.
CMIC, the independent market regulation arm of the Philippine Stock Exchange (PSE), cited MTPeak’s “failure to comply with capital requirements and other securities laws.”
In July, Globalinks Securities & Stocks was similarly punished by CMIC for having insufficient capital.
During its suspension, CMIC restricted MTPeak’s access to 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.
“CMIC has directed MTPeak to immediately inform its clients of the involuntary suspension and its consequences, and to assist them in such a manner that their interests are duly safeguarded,” CMIC president Gerard Sanvictores said.
During the suspension period, MTPeak’s clients may request for the transfer of their securities to a brokerage of their choice. Clients may also execute done-through sell transactions, subject to the approval of CMIC.
Established in 1975, MTPeak is a pioneer member of the Makati Stock Exchange Inc., which was eventually merged with the old Manila Stock Exchange to form the PSE.
For its part, CMIC is mandated to perform the audit, surveillance and compliance monitoring of the activities of market participants.
To date, CMIC is processing client claims against six trading participants that had permanently shut down: Asian Capital Equities, HK Securities, Mariano Olondriz Y Via, I Ackerman & Co., R&L Investments Inc. and Equitiworld Securities Inc.
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