Trading by Traders/Salesmen of Brokerage Firms for Their Own Personal Accounts
SEC-BED Memorandum Circular No. 03-97 • Securities and Exchange Commission Departments • Markets and Securities Regulation Department (MSRD) • May 9, 1997
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May 9, 1997 SEC-BED * MEMORANDUM CIRCULAR NO. 03-97 TO : 1. All Licensed Traders/Salesmen 2. Philippine Stock Exchange SUBJECT : Trading by Traders/Salesmen of Brokerage Firms for Their Own Personal Accounts The Commission has received reports of a prevailing practice among several traders/salesmen of brokerage firms trading in the Philippine Stock Exchange (PSE) for their own personal accounts. This practice is inimical to the interest of the investing public. Brokerage firms and their traders/salesmen must first and foremost be concerned about the interest of their customers, not their own personal interests. In order to assure and maintain a high degree of investor's confidence in the stock market; all licensed-traders/salesmen are hereby absolute prohibited from trading in the Exchange for their personal accounts, directly or indirectly. The PSE is hereby directed to strictly implement this Circular and include the prohibition in its Sales Practice and Business Conduct Rules. Once PSE Rules on the matter are approved by the Commission, this Circular deemed functus oficio. Any trader/salesman found violating this Circular shall be imposed the penalty of a fine and/or suspension or revocation of his license as may be determined by the Commission in accordance with existing SEC rules. The brokerage firm may be held responsible for the acts of its traders and salesmen in violation of this Circular under the principle of respondeat superior. FOR IMMEDIATE AND STRICT COMPLIANCE. (SGD.) PERFECTO R. YASAY, JR. Chairman
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