SEC cancels investment house licenses of 3 banks

The Securities and Exchange Commission (SEC) has decided not to renew for the current year the investment house licenses of three big banks for their refusal to pay the penalties imposed by the agency.

The three are Development Bank of the Philippines, China Bank, and the ING Bank. Licensed as underwriter of securities since 1997, China Bank has contested the penalty set by the SEC for its failure to comply with the reportorial requirements

The ING Bank, licensed as securities trader since 1996, did not get its license renewed for the current year also due to non-payment of SEC-imposed penalties.

Of 52 investment houses, the SEC renewed the licenses of 44 while the rest either failed to comply with the requirements or did not bother to renew their licenses at all.

Delisted from the original 42 are Angping Capital Inc. which surrendered its license last year, Exchange Capital Corp. and Sun Hung Kai Capital Phils. Inc. The latter also voluntarily suspended its trading operations at the Philippine Stock Exchange.

According to SEC records, there are eight universal banks licensed as underwriters of securities. These are Allied Banking Corp., Development Bank of the Philippines, Land Bank of the Philippines, Solid Bank Corp., Hongkong and Shanghai Banking Corp. Ltd., ING Bank, China Banking Corp., and United Coconut Planters Bank.

Solid Bank is affiliated with Consolidated Orix Leasing and Finance Corp. Hongkong and Shanghai Banking Corp. obtained its license as underwriter on Aug. 15, 2000.

Although it had a subsidiary investment house, the United Coconut Planters Bank never renewed the license of UCPB Capital Corp since 1998.

Removed from the list for non-compliance with the minimum paid-in capital requirement are Educational Capital Corp., and Grand Asia Capital Corp.

The investment house denied the renewal of its license due to non-compliance with R.A. 8366 was Keppel Ivi Investments, Inc. which has a paid-in capital below the P250-million requirement. In addition, BNP Prime Peregrine Capital, Inc. did not get its license for the current year because of its merger with Paribas.

For having pending appeals with the commission en banc, DHB Capital Philippines, Inc. and Prudential Investments, Inc. did not get a new lease on life for this year. NMB voluntarily did not renew its license.

Earlier, SEC and BSP Securities imposed a moratorium on the issuance of new licenses for investment houses following the collapse of several investment houses in the country, including Westmont Investment Corp. (Wincorp).