SEC-BED Memorandum Circular no. 01, Series of 2000

April 5, 2000 PSE MEMO FOR BROKERS NO. 096-00 FOR : All Member-Brokers RE : SEC-BED Memorandum Circular no. 01, Series of 2000 Please find attached copy of the SEC - BED Memorandum Circular No. 01, Series of 2000 issued by Dir. Elizabeth C. Martin of SEC Brokers and Exchange Department regarding the Hands-on Training of securities representatives. For your information. (SGD.) JOSE LUIS U. YULO JR. President & Chief Executive Officer 30 March 2000 PHILIPPINE STOCK EXCHANGE Philippine Stock Exchange Centre Exchange Road, Ortigas Center Pasig City ATTENTION: MR. JOSE LUIS YULO. JR. President Gentlemen: Transmitted to you herewith is SEC-BED Memorandum Circular No. 01, Series of 2000 relative to Hands-on Training of securities representatives. Please disseminate this to all PSE member broker/dealers. Thank you for your cooperation Very truly yours, (SGD.) ELIZABETH C. MARTIN Director SEC-BED MEMORANDUM CIRCULAR NO. 01 Series of 2000 TO : All Securities Broker/Dealers SUBJECT : Hands-on Training It has been observed that trading by unlicensed individuals has become very rampant primarily because broker/dealer firms allow unlicensed individuals to undergo hands-on training. This is in violation of Section 19 of the Revised Securities Act, which provides: IcHSCT No . . . salesman shall engage in business in the Philippines as such . . . salesman or sell any securities, including securities exempted under this Act, except in exempt transaction, unless he has been registered as a . . . salesman pursuant to the provisions of this Section. In this connection, the following guidelines shall be observed with respect to hands-on training: While hands training will improve the competence of securities representatives to perform their jobs, only registered and licensed securities representatives/salesmen shall participate in hands-on-training. He/She shall be assigned to a specific Supervisor appointed by the broker/dealer. The Supervisor, who is a duly registered and licensed securities representative/salesman, will have direct responsibility for the conduct and actions of the trainee/salesman and will work closely with the latter to ensure that he applies the knowledge acquired from the training and examination phases in a professional manner. The Supervisor shall coach him on a point-by-point basis. All recommendations made by the trainee-salesman to an investor shall be concurred with by his appointed Supervisor and all orders entered by a trainee-salesman on behalf of an investor must be co-signed by the Supervisor. The hands-on training shall be compulsory with respect to those who are registered and licensed after recently passing the Certified Securities Representative Exam and shall be for a period of at least two (2) months after registration. As proof of compliance with this requirement, the broker/dealer to which the registered and licensed securities representative-trainee is affiliated shall submit to the Commission a certification under oath of completion of the hands-on training. EDSA, Greenhills, Mandaluyong City. March 29, 2000. (SGD.) ELIZABETH C. MARTIN Director