PSE starts disciplinary proceedings vs broker

THE PHILIPPINE Stock Exchange, Inc. (PSE) will be conducting disciplinary proceedings against stock brokerage firm DW Capital, Inc. (DWCI), following a string of unauthorized deals worth P2.6 billion earlier this year.

In a memorandum posted on its Web site on Tuesday, the PSE said it initiated disciplinary proceedings against the brokerage as per Section 40.6.1 of the Implementing Rules and Regulations of the Securities Regulation Code. The provision states in part that a self-regulatory organization is authorized to discipline a member or participant.

With this, the PSE reiterated DW Capital’s preventive suspension, which has been in place since Aug. 10, effectively barring its access from the trading system of the bourse.

“During the pendency of such proceedings, DW shall remain under preventive suspension and shall have no access to the trading system of facilities of the Exchange,” the PSE said.

Prior to the disciplinary proceedings launched by the bourse, Capital Markets Integrity Corp., a self-regulatory organization of trading participants in the PSE, filed a petition last Aug. 8 to take over DW Capital.

The company has been accused of engaging in the unauthorized trading of securities for five accounts totaling P2,599,324,718 as of July 18, 2017. These accounts are owned by the Gaisano family, a member of whom is married to former DWCI President Derwin Ngo Wong.

The corporate regulator then created a special hearing panel to investigate these allegations last September. The SEC, however, has previously declined to disclose details of the investigation as it has yet to conclude the proceedings.