CMIC to take over R&L Investments, Inc. to protect investors —SEC

The Securities and Exchange Commission (SEC) ordered the Capital Markets Integrity Corporation (CMIC) to take over the operations of the R&L Investments, Inc. to protect investors on Friday afternoon, according to an SEC press release.

"The Commission issued the order on November 14, following the stock brokerage’s collapse allegedly due to unauthorized transfers of proprietary and client shares worth more than P700 million into an account with another brokerage," said the SEC.

This announcement came about a week after rogue R&L Investments Inc. employee Marlo Moron allegedly stole P750M worth of stocks.

The CMIC is the independent audit, surveillance and compliance arm of the Philippine Stock Exchange (PSE).

The CMIC is mandated, according to the Securities Regulation Code (SRC) or R.A. 8799, to take over the operations of the member firm when it has 'deteriorated in a way that it cannot readily meet the demands of customers for the delivery of securities and/or payment of sales proceeds'- upon orders from the SEC.

In addition to taking over the operations, the CMIC was also ordered by the SEC to take other necessary actions such as: preservation of the assets and books and records of R&L Investments, Inc., and to execute acts or documents necessary or appropriate in carrying out its powers, among others.

Furthermore, the CMIC was also tasked to determine the 50-year old stock brokerage firm's various violations of the SRC and its implementing rules and regulations.

These will be compiled in a report and recommendation to be submitted to the SEC Markets and Securities Regulation Department, not later than December 20, 2019.

On Friday, the stock brokerage firm was placed under involuntary suspension by the CMIC. —Angelica Yang/LDF, GMA News