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SEC orders PSE's compliance arm to take over brokerage hit by P700-M theft

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ABS-CBN News

MANILA -- The Securities and Exchange Commission said Friday it ordered the Philippine Stock Exchange&#x27;s compliance arm to take over a brokerage house that was hit by a P700-million theft.The Capital Markets Integrity Corporation&#x27;s move will &quot;protect affected customer accounts&quot; of R&amp;L Investments, the SEC said in a statement.The SEC said it also ordered the CMIC to determine possible violations of the Securities Regulation Code by R&amp;L Investments.The regulator said it would proceed with its own investigation and the filing of cases if needed.Based on its 2018 audited financial statements, R&amp;L Investments booked client securities worth P738,897,290. However, the Philippine Depositary and Trust Corp reported that R&amp;L&#x27;s portfolio amounted to only P132,255,939, the SEC said.With total net assets of P46,815,973, R&amp;L will have negative equity of P559,825,378 should it absorb the value of the alleged missing shares.

The Capital Markets Integrity Corporation's move will "protect affected customer accounts" of R&L Investments, the SEC said in a statement.

The Capital Markets Integrity Corporation's move will "protect affected customer accounts" of R&L Investments, the SEC said in a statement.