Adoption of the Broker-Dealer Chart of Accounts

March 18, 2010 SEC MEMORANDUM CIRCULAR NO. 01-10 SUBJECT : Adoption of the Broker-Dealer Chart of Accounts The Commission, in its meeting dated 17 December 2009, approved the adoption as part of its rules, of the Broker-Dealer Chart of Accounts (BDCA) for implementation by all registered broker-dealers in securities which include both trading and non-trading participants of the Philippine Stock Exchange. The BDCA, which can be viewed and downloaded at www.sec.gov.ph, shall be applied henceforth to all financial statements of broker-dealers starting 01 January 2011. Accordingly, failure to comply with the BDCA which was issued pursuant to Section 68 of the Securities Regulation Code shall subject the erring party to sanctions provided under SEC Memorandum Circular No. 8, Series of 2009 or the Scale of Fines for Non-Compliance with the Financial Reporting Requirements of the Commission, as follows: Annual Financial Statements Violation First Second Third Offense Offense Offense Material deficiency Deficit P2,500 P5,000 P10,000 in the financial Retained Earnings: statements or non- Up to P1,000,000 P5,000 P10,000 P20,000 compliance with P1,000,000 to P10,000,000 6,000 12,000 24,000 the requirements P10,000,001 to P20,000,000 7,000 14,000 28,000 of the Rules P20,000,001 to P30,000,000 8,000 16,000 32,000 Above P30,000,000 9,000 18,000 36,000 Interim Financial Statements Violation First Second Third Offense Offense Offense Material deficiency Deficit P500 P1,000 P2,000 in the financial Retained Earnings: statements or non- Up to P1,000,000 P1,000 P20,000 P4,000 compliance with P1,000,000 to P10,000,000 2,000 22,000 8,000 the requirements P10,000,001 to P20,000,000 3,000 24,000 12,000 of the Rules P20,000,001 to P30,000,000 4,000 26,000 16,000 Above P30,000,000 5,000 28,000 20,000 For purposes of wider dissemination, this Memorandum Circular shall be published in a newspaper of general circulation. Signed this 18th day of March 2010 at EDSA, Greenhills, Mandaluyong City. For the Commission En Banc: (SGD.) FE B. BARIN Chairperson Published in The Philippine Daily Inquirer and Manila Standard on March 26, 2010 .