Question & AnswerQ&A (SEC)
They must observe high standards of commercial honor and just and equitable principles of trade.
A broker or dealer must deliver to its customers the securities to which they are entitled upon demand unless prevented by circumstances beyond its control.
Brokers or dealers must have reasonable grounds for believing the recommendation is suitable for the customer based on disclosed facts like financial situation and security holdings, and must make reasonable efforts to obtain relevant information before executing the transaction.
No broker or dealer shall give anything of value, including gratuities exceeding P10,000 per individual per year, related to the employer's business. All gratuities must be recorded and retained for three years.
The system must include written supervisory procedures, designation of supervisory officials, documentation of supervisory personnel’s qualifications, written documentation of compliance participation, and notification of compliance obligations.
Members or their representatives who execute an order to buy and sell securities involving no change of ownership shall be immediately expelled by the securities exchange.
A broker or dealer shall not trade a security for their own account or accounts of insiders when holding an unexecuted customer order at a price equal or better than the customer's order price to the disadvantage of the customer.
Communications must be based on fair dealing and good faith, must not omit material facts that would mislead, must not contain exaggerated or misleading claims, and must consider audience and clarity to avoid misunderstandings.
A short sale is any sale of a security which the seller does not own or is consummated through delivery of borrowed securities.
Violators face fines up to P50,000 per order or transaction, and brokers or dealers may have their licenses suspended if found violating the rule twice.
Persons acting in a fiduciary capacity shall not use ownership information of securities to solicit or conduct transactions or share such information with unauthorized persons.
Brokers or dealers must transact at fair prices considering all circumstances and must not charge unfair commissions or fees acting as agents.
A broker or dealer cannot give any proxy, consent, or authorization related to customers' securities without the customer's express written authorization.