PSE's Failure to Inform SEC of the Imposition of Penalties on Listed Companies for the Period Covering 2005 to 2008

June 9, 2010 SEC-MRD OPINION Philippine Stock Exchange Inc. PSE Center Exchange Road Pasig City Fax: 634-5113 Attention: Mr. Val Antonio B. Suarez, COO Gentlemen : This refers to the Exchange's explanation dated 12 February 2010 to the n this Department's show cause letter of 3 February 2010 on PSE's failure to inform the Commission of the imposition of penalties on listed companies for the period covering 2005 to 2008. In its letter, PSE explained that the PSE Disclosure Department submitted to the Commission the reports on penalties imposed on participants from 2005 to April 2006. For the period covering May 2006 to 2008, the PSE admitted its failure to submit the required reports and apologized for such failure and promised to submit the required reports on monthly basis. Be informed that the Commission in its meeting on 20 May 2010 resolved to: 1. ACCEPT the apology of PSE for its failure to submit the reports from May 2006 to 2008. 2. DECLARE PSE to have violated Section 40.4 of the Securities Regulation Code and SRC Rule 39.1 (H) (iv) for failure to promptly notify SEC of the sanction imposed on its participant Benguet Corporation, and impose on PSE the fine of PhP100,000.00 for said violation. 3. IMPOSE on PSE a fine of PhP100,000.00 for each year of violation from 2006 to 2009 for violation of Section 40.7 of the SRC and SRC Rule 39.1 (H) (iv) of the SRC. 4. PAY the imposed fines within five (5) days from receipt hereof. In view of the foregoing, PSE is directed to pay to the Commission the amount of PhP500,000.00, within five days from receipt of this letter and submit compliance hereof. ATHCDa PSE is likewise directed to disclose this matter in its website. Very truly yours, (SGD.) JOSE P. AQUINO Director n Note from the Publisher: Copied verbatim from the official document.