MANILA, Philippines - The Securities and Exchange Commission (SEC) is standing pat on its position that the appointment of lawyer Val Antonio Suarez as president of the Philippine Stock Exchange is in violation of the Securities Regulation Code (src).
In particular, the SEC cited Sec. 33.2 of the src which states that the president and other management of the exchange “should consist only of persons who are not members and are not associated in any capacity, directly or indirectly with any broker or dealer or member or listed company of the exchange.”
Suarez’s wife, Milagros Cecilia Dolendo Suarez, currently serves as president, managing director and stockholder of JP Morgan Securities Philippines Inc.
In a statement, the PSE said it “strongly believes that Suarez possesses the qualifications, skills, motivations and energy for handling the job of president and chief executive officer of the exchange and is legally qualified to serve as such.”
The SEC has fined the PSE at least P1 million for breach of rules. A fine of P1,000 a day will be meted out for continuing violation, said SEC commissioner Juanita Cueto.
Industry observers took a swipe at SEC for being helpless in cracking the whip on the PSE, saying Suarez’s appointment was made since August.
The PSE said it would appeal the SEC ruling and found the corporate watchdog agency’s position odd since there were no issues during Suarez’s appointment as chief operating officer.
Suarez explained that his wife holds only one share in JP Morgan.