In a notice to all trading participants, the PSE said any and all movements on these accounts should have its prior approval.
The move came after the PSE took over the operations of ACE due to the latter’s deteriorating financial condition and after finding reasonable grounds it violated provisions of the Securities Regulation Code (src).
A cease and desist order was issued by the Securities and Exchange Commission (SEC) against ACE for violation of src provisions, which include fraudulent transactions and restrictions on borrowings by members, brokers and dealers.
As of end-September this year, the trial balance of ACE showed a negative networth amounting to P65 million. Although the firm has an excess net capital of P3.7 million, without its subordinated loan of P77 million, the net capital deficiency will amount to P73.55 million.
The SEC has also ordered PSE to undertake other measures necessary or incidental in taking over the troubled brokerage company.