ACTION. The Securities and Exchange Commission orders the takeover of embattled R&L Investments. Photo by Philippine Stock Exchange
CMIC is now tasked to arrange for another trading participant to take over outstanding contracts relating to securities, as well as notify affected customers and allow them to transfer their accounts to another trading participant of their choice. If trade-related assets fall short, CMIC will refer the outstanding liabilities to the PSE's investors' protection fund – a fund contributed to by trading participants for the protection of investors against losses in case of fraud, failure, or insolvency of trading participants.
In 2018, R&L Investments booked client securities worth almost P739 million. This contradicts a report by the Philippine Depositary and Trust Corporation , which showed the brokerage's client portfolio only amounted to over P132 million.