PSE to probe brokers’ role in SSS stock trading mess

The Philippine Stock Exchange (PSE) is conducting its own investigation into possible misconduct among its member brokers regarding the stock trading controversy involving four executives of the Social Security System (SSS), a PSE official told reporters late Thursday.

"Kasi there is a contractual relationship with our brokers. So if there's something they find to be a mess with respect to their relationship with our brokers, then we are probably going to take that in and see," PSE chief operating officer Roel Refran said in an interview.

The SSS Commission is now doing an internal investigation related to a complaint filed by SSS commissioner Jose Gabriel La Viña against four executives of the pension fund for private sector employees.

La Viña has filed an administrative complaint against executive vice president Rizaldy Capulong, Equities Product Development head Ernesto Francisco Jr., Equities Investment Division chief Reginald Candelaria, and chief actuary George Ongkeko Jr. for allegedly profiting from their stock positions by contracting the same stockbrokers who manage the SSS portfolio for their personal investments.

"We will also evaluate 'yung findings nila in line with our applicable rules for trading participants, brokers," Refran said.

"The question is, 'Is there a conflict when they [brokers] deal with the officers of the SSS? Who are also the ones recommending which brokers will get allocation?'" the PSE official noted.

In doing its own probe into the matter, the PSE is closely coordinating with the SSS.

"If there's any information they need from us, the PSE, we will be happy to work with them. Open 'yung communication lines namin with them," he said.

SSS chairman Amado Valdez claimed earlier that the allegations hurled at four officials of the SSS who supposedly profited from stock trading was more an issue of conflict of interest.

Valdez noted that there was no misuse of SSS funds involved in the controversy.

In another statement, the pension fund said the Investment Reserve Fund (IRF) remained "intact and well-protected."

The SSS Charter allows the pension fund to invest 30 percent of the IRF in equities.

As of September 2016, the SSS has investment portfolio of P470.14 billion, comprising 39 percent or P180.46 billion of government securities, 24 percent or P111.22 billion of equities, and 18 percent or P85.93 billion of member loans.