THE Philippine Stock Exchange, Inc. (PSE) said it had been mandated to take over the operations of stock brokerage firm DW Capital, Inc. as stated in a resolution issued by the Securities and Exchange Commission (SEC).

It said the SEC resolution dated Dec. 5, 2017 called for the takeover of DW Capital “effective immediately” pursuant to Rule 33.1(d) of the 2015 Securities Regulation Code. The rules state in detail the protection of customer accounts in case of business failure of an exchange trading participant.

The PSE has also been told to take necessary actions to protect customer accounts including, but not limited to the preservation of the assets and books and records of DW Capital.

It is also to execute “such acts or documents necessary or appropriate in carrying out the foregoing power.”

“To enable PSE to validate customer accounts and settle DW Capital’s liabilities to customers, all customers of DW Capital are requested to file with PSE, within thirty (30) days from the date of this notice, a notarized affidavit of claim with attached certified photocopies of: (a) two valid identification cards of the claimant; and (b) documents supporting the claim,” said the PSE’s Dec. 7 notice, which was signed by Ramon S. Monzon, president and chief executive officer.

The PSE move against the stock broker came after a series of unauthorized deals worth P2.6 billion earlier this year.

DW Capital has been accused of engaging in the unauthorized trading of securities for five accounts totaling P2,599,324,718 as of July 28, 2017. The accounts are owned by the Gaisano family, a member of whom is married to former DWCI Capital President Derwin Ngo Wong. — Victor V. Saulon

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