BW Investigation Procedures

February 10, 2000 PSE MEMO FOR BROKERS NO. 050-00 TO : All Member-Brokers RE : BW Investigation Procedures In the interest of clarity, and to avoid misconceptions in the procedural conduct of the investigation of BW by the PSE's Compliance and Surveillance Group (CSG) and the action/disposition thereof by the Business Conduct and Ethics Committee (BCEC), please be informed of the following: 1. On the Time to Finalize the Investigation Per Rule Book V Article IX, the CSG is given six (6) months to complete its investigations. However, the SEC, in its directive, gave CSG 90 days from 11 November 1999. Therefore, aware of the significance of this particular investigation, CSG has been working double-time to try their best to meet the 90 days SEC deadline (Sections 10 and 11 of the said Rule Book V); A final report of CSG shall therefore be finished by end of working hours of 11 February 2000 or 64 working days from the SEC's directive. cdlex 2. On the Procedure Followed Please find enclosed a summary of the procedures and responsibilities of the CSG, BCEC, PSE President, Board of Governors as contained in Rule Book V, Article IX for your perusal. 3. On Who will Receive the Final Report Again, per said Rules, the CSG/BCEC shall only submit its final report to the President of the Exchange, to the BCEC, and to the SEC and to those required by law or required by the authorities (Section 16). LibLex (SGD.) JOSE LUIS U. YULO, JR. President/CEO