Brokers’ petition for TRO on SRC rules junked

A LOCAL COURT has denied the petition of the Philippine Association of Brokers and Dealers, Inc. (PASBDI) to stop the implementation of certain provisions of the new implementing rules and regulations of the Securities Regulation Code.

The Regional Trial Court of Mandaluyong City junked PASBDI’s prayer for a temporary restraining order and writ of preliminary injunction, the Securities and Exchange Commission (SEC) said in a statement yesterday, citing an order dated Jan 20.

In the petition, the brokers’ group sought to invalidate the amendments requiring disclosure of beneficial owners of shares of stocks — a requirement necessary to boost efforts against money laundering and to comply with a Supreme Court directive requiring the SEC to ensure compliance with limits on foreign ownership.

Likewise, PASBDI opposed the requirement that brokers and dealers should provide the SEC with a comprehensive information technology plan, business continuity, disaster recovery plan, risk management manual and internal control procedures as a prerequisite for registration.

“In the present petition, the application is not even supported by affidavits clearly showing facts and circumstances relative to the great or irreparable damage that would allegedly result to the Petitioner’s financial status and business reputation as well as to the capital market of the Philippines in its entirety, if such application will not be granted by the court,” it said.