Policy Guidelines in the Absence or Resignation of Associated Persons

January 3, 2013 SEC-MRD * OPINION Capital Markets Integrity Corp. Unit E-27th Floor, Tower 1 & Exchange Plaza Ayala Ave., Makati City Fax no. (632) 659-6001 Attention: Mr. Antonio Garcia, Jr. President & CEO SUBJECT : Policy Guidelines in the Absence or Resignation of Associated Persons Gentlemen : Please be informed that the Commission approved in its meeting on November 22, 2012 the following Policy Guidelines in the event the Associated Person (AP) resigns or is temporarily absent: 1. Each company shall amend its Written Supervisory Procedure Manual (WSP) stating its rules of procedures/precautionary measures in the absence of an AP, short or long term, particularly on its duties as provided for under SRC Rules 28.1 (4) (G) and 30.2 (6); 2. Should an AP file his leave of vacation purposes, the company shall notify the Commission, in writing, at least three (3) business days in advance; 3. Temporary/short leave for absence/s due to emergency, health, and other personal reasons not exceeding fifteen (15) calendar days, the company shall file within three (3) business days after the occurrence of the event; 4. Any leave of absence beyond fifteen (15) calendar days, the company shall file before the Commission an application for exemptive relief and pay the corresponding fee of Twenty Thousand Pesos (P20,000.00). The company shall immediately report, in writing, the date of assumption of work of the AP. 5. In the event an AP unexpectedly resigns or during the pendency of an application for exemptive relief involving an absence of an AP, it is the responsibility/accountability of the Board of Directors to immediately appoint an able person to perform the functions of an AP subject to the following: a. The company's President shall take full accountability and responsibility for ensuring compliance by the firm even as the appointed person performs the activities required and expected of an AP; b. The company shall be willing to be subject to a monthly audit to be conducted by the Capital Markets Integrity Corporation (CMIC) and pay a supervision fee of at least Twenty Five Thousand Pesos (Ph25,000.00) per month; 6. The company shall have a maximum period of six (6) months within which to appoint and register an AP and may avail of this relief once every six (6) years; and 7. The Commission reserves the right to withdraw the exemption granted anytime in the interest of the public and protection of investors and thereafter subject the company to appropriate suspension/revocation proceedings and impose other penalties, if warranted. In this regard, kindly disseminate the foregoing to Broker Dealers which are under your jurisdiction. Very truly yours, (SGD.) VICENTE GRACIANO P. FELIZMENIO, JR. Director