通过 丹尼斯一个。瓦尔迪兹, 记者
THE Capital 市场 Integrity Corp. (CMIC) is set to take over the operations of embattled brokerage R&L Investments, Inc. upon the order of the Securities and Exchange Commission (秒).
In a statement Friday, the country’s corporate regulator said it ordered CMIC to handle outstanding contracts of R&L Investments to protect the brokerage’s existing clients.
The 秒 said that a week since it started investigation on the case, it has established that R&L Investments’ current financial condition “has so deteriorated that it cannot readily meet the demands of its clients for the delivery of securities and/or payment of sales proceeds“。
In a Nov. 14 memorandum of CMIC posted on its website, it requested clients of R&L Investments to “send all relevant information, inquiries and/or claims involving the trading participant to email@example.com“。
The Philippine Daily Inquirer broke the news last week about a rogue employee of R&L Investments that wiped out the brokerage’s inventory of stocks by allegedly stealing piece by piece for the past eight years.
R&L Investments had since shut down its operations, and CMIC put it under involuntary suspension to start a probe on the case. This means the brokerage is denied access to its account with the Philippine Depository and Trust Corp. (PDTC) and may not avail of clearing services from the Securities Clearing Corporation of the Philippines.
The inconsistencies in R&L Investments’ records were broken down by the 秒 on Friday. It said the brokerage had securities from clients worth P738.9 million based on its 2018 audited financial statements. But a Business Partner (BP) report from the PDTC showed the company’s client securities only stood at P132.26 million.
The BP Report submitted by R&L Investments to CMIC as of end-August showed its client shares were worth P734.41 million, which differs from what PDTC reported to the 秒 for the same period saying client shares stood at P31.54 million.
A different audit by the CMIC also showed different figures, where client securities of R&L Investments were worth P747.82 million as of Oct. 31, against PDTC’s records showing it stood at P30.4 million.
“Sensing the gravity of the inconsistencies, the 秒 ordered R&L Investments to preserve its books, records and assets as well as the PSE, CMIC and PDTC to take all the necessary actions through a letter dated Nov. 12,” it said.