MANILA, Philippines - The Capital Markets Integrity Corp. (CMIC) has seen a sharp drop in infractions of securities laws and rules committed by stockbrokers, according to its top official.
CMIC is an independent audit, surveillance and compliance unit of the Philippine Stock Exchange (PSE) that started operations in March.
Antonio Garcia Jr., president of CMIC, noted that the number of securities laws and rules violations decreased from a monthly average of three per broker to one per broker.
He said the number of brokers subjected to monthly spot audit likewise declined to nine from 54.
“As regulators, we take this as a good sign for the capital markets industry. It means that brokers are becoming more interested in knowing what the rules are and how to comply with them,” Garcia said.
Garcia is looking forward to the day when no penalties are imposed on the exchange’s 133 trading participants.
“It would be a mark of success for us regulators if there comes a time when no penalties are imposed on brokers because no rule violations are committed. That would mean that we did our job as regulators and that we accomplished the duty that we have been tasked to do. With your help, this may be possible if we work together, not as regulator and regulated entities, but as partners working towards a common goal,” Garcia pointed out.