Exceptions to Prohibition Based on SEC Authority and Control
- Acquisitions by related persons require prior SEC authority if the purchaser is not under the broker-dealer's control regarding voting rights and beneficial ownership.
- Employees of broker-dealers may acquire PSE shares if the funds used are not from the broker-dealer and if they maintain control over voting rights and beneficial ownership; otherwise, such acquisitions may be seen as circumventions.
Client Identification and Monitoring Procedures
- Broker-dealers must record each customer's Tax Identification Number (TIN) in the PSE MAKTRADE system when placing buy or sell orders.
- Customers without a TIN (e.g., foreigners) must be assigned a unique code constructed from the first five letters of the surname (or hyphens as filler) and five alphanumeric characters from the passport number.
- Broker-dealers currently using different customer code systems must notify the SEC and provide details of the preferred code system.
- A master list linking preferred codes with full names and passport numbers must be maintained by the broker-dealer.
Daily Reporting Requirements
- Broker-dealers must submit daily reports of all PSE share transactions effected, signed by the Associated Person, no later than 3:00 p.m. of the same day.
- These reports must follow the prescribed format outlined in Annex "A".
Weekly Submission of Original Signed Reports
- An original signed copy of all daily reports submitted in the preceding week must be sent by 12:00 noon every Monday.
Reporting of Off-PSE Transactions
- Broker-dealers must file separate reports for transactions involving PSE shares conducted outside the PSE, due by 12:00 noon the following day.
Prohibition of Discretionary Proxies
- Broker-dealers are prohibited from soliciting or receiving discretionary proxies from customers regarding PSE shares.
- Customers are also prohibited from issuing discretionary proxies in favor of brokers to prevent broker-dealers from exceeding allowable voting rights control.
Additional Reporting and Compliance Measures
- The SEC may require broker-dealers and/or the PSE to submit additional reports or perform acts necessary to ensure compliance with these rules.
Effectivity
- The rules took effect immediately upon approval on 30 December 2003, except for daily and weekly reporting provisions (Rules 4 & 5), which became effective on 12 January 2004.