Metro Manila (CNN Philippines, November 20) — The brokerage firm that recently ceased operations after a multi-million theft may no longer return to business, Philippine Stock Exchange (PSE) President Ramon Monzon said Wednesday.
“I don’t think so,” Monzon said when asked whether R&L Investments, Inc. can resume operating following a massive theft.
The 50-year-old company was reportedly forced to stop operating after stocks worth more than ₱700 million were allegedly stolen by clerk and longtime employee Marlon Moron.
The Securities and Exchange Commission last week ordered Capital Markets Integrity Corporation (CMIC), the independent audit, surveillance, and compliance arm of the PSE, to take over the company.
READ: PSE watchdog to take over theft-hit brokerage
RELATED: SEC to monitor probe into shutdown of 50-year-old stock brokerage
CMIC was ordered to preserve the assets and books and records of R&L and execute acts or documents necessary or appropriate in carrying out its powers.
Monzon said the PSE is looking at some measure such as raising capital to “rationalize” the brokerage industry in the country.
“We’re not favoring the big brokers or small brokers, what we’re saying maybe all brokers should have a minimum capitalization, so they can afford to hire enough people to be able to have correct internal control,” he said.
“That’s what happened to R&L; there was one person doing the front end and the back end,” Monzon said.
