PSE regulatory arm places R&L Investments under involuntary suspension

R&L Investments Inc., a stock brokerage firm was placed under involuntary suspension by the Capital Markets Integrity Corp. (CMIC) on Friday after a rouge employee allegedly pilfered around P700 million worth of stocks.

In a memorandum, CMIC said the consequences of placing R&L under involuntary suspension are as follows:

• suspension of trading right and deactivation of access to the Philippine Stock Exchange’s (PSE) trading system

• denial of access to R&L’s account with the Philippine Depository and Trust Corp.

• suspension of clearing services by the Securities Clearing Corp. of the Philippines

CMIC is the independent audit, surveillance, and compliance arm of the PSE in line with its mandate to reinforce confidence among the investing public in capital market institutions.

As a self-regulatory organization, CMIC is tasked to enforce Republic Act No. 8799, or the Securities Regulation Code (SRC) and the pertinent rules and regulations.

Its mandate is to investigate and resolve violations by trading participants as well as trading-related irregularities and unusual trading activities involving listed companies.

Marlo Moron confessed to having stolen shares of stocks from R&L Investments, one of the oldest brokerage firms in the country.

In a written statement, Moron claimed that he alone committed the theft. He started stealing from the company minuscule amounts in 2011 until he was tempted to go for larger amounts.

In a separate statement, R&L said it is prioritizing clients affected by Moron’s illicit activities.

“At present, our priority is to dialogue and collaborate with the clients affected by Mr. Moron’s fraudulent activities,” R&L said.

“At the same time, we are also in the midst of a comprehensive and rigorous investigation to determine how Mr. Moron was able to intentionally and deliberately deceive our company, its auditors, and other regulators for such an extended period of time,” it added.

The CMIC is looking at pertinent details relevant to the case. It has initiated a special audit of the books and records of the parties and other stock brokers involved.

“"Further, all trading participants are requested to inform CMIC of all pending transactions and contracts with R&L, if any. All relevant information and/or inquiries may be sent to info@cmic.com.ph,”it said. —Ted Cordero/VDS, GMA News