Suspended Member-Brokers

August 19, 1998 PSE CIRCULAR FOR BROKERS NO. 1933-98 SUBJECT : Suspended Member-Brokers Quoted below are the conditions that the Securities & Exchange Commission (SEC) has imposed on PSE member-brokers wishing to temporarily suspend their operations: "xxx xxx xxx 1. Upon request, a member-broker may be allowed to become a non-operating/non trading member of the PSE until 31 December 1998; 2. As a non-operating member: (a) the said broker shall be exempted from the submission of the FINOP report and other reportorial requirements; (b) during its non-operating period, the member shall be required to maintain a net capital of only P2 million; (c) when applying for renewal of its SEC license within 01 November to 01 December 1998, the member must again have a minimum net capital of P5 million among other requirements; (d) only Nominees, Officers and Staff of the non-operating member who are licensed salespersons shall continue trading as agents of operating member-brokers, and (e) the non-operating member may resume operation anytime, with prior notice to SEC and PSE, provided it is in compliance with the net capital rule and other requirements of the Commission." The member's request to suspend operation must be addressed to the Exchange. By December 1998, the situation shall be reviewed again to see if there is a need to extend the arrangements. For your guidance. (SGD.) JOSE LUIS U. YULO, JR. President & CEO