Golden Tower says trading violation at PSE an isolated case

Stockbrokerage house Golden Tower Securities & Holdings Inc. yesterday said the violation committed by one of its salesmen was an isolated case that involved only one account.

In a press statement, Golden Tower owner Kenneth Lao said while it was true that the company was penalized by the Philippine Stock Exchange for violation of the rules on short-selling, “Golden Tower has already complied with all the requirements of the PSE in dealing with the said matter.”

Short-selling refers to the sale of a security that is not owned by the seller but that is promised to be delivered.  It is a trading strategy that aims to capitalize on an anticipated decline in the price of a stock.

Lao also assured investors that Golden Tower does not tolerate any malpractice or misconduct by its employees and agents and has, in fact, imposed sanctions against the erring salesman.

‘Well aware of its responsibility for the acts or omissions of its employees and agents in respect of the conduct of the business, the company, immediately upon being reported of the violation via a check and balance system practiced internally, diligently and earnestly investigated the matter, and imposed the appropriate sanctions on the said salesman at maximum penalty,” Lao said.

Lao said the company welcomes any inquiries or concerns with respect to its operations. “Any noted violation will be acted upon immediately,” he said.

“The management of the company wishes to ensure its clients that the protection of its interests will always be of paramount importance to the company,” Lao said.

Goden Tower was imposed a P50,000 fine for having sold P12.96 million worth of stocks it did not own as of August 21 in violation of the Securities Regulation Code. 

Aside from the monetary penalty, Golden Tower was also prevented from withdrawing money from its bank account and conducting any trades unless with prior approval of the Securities and Exchange Commission.   — Zinnia dela Peña