Some businessmen, who declined to be identified, said the SEC’s move to investigate The First Resources Management and Securities Corp. for allegedly monopolizing the stock market transactions of the Government Service Insurance System (GSIS) based on text messages sent to the SEC by anonymous texters has created anxiety among company owners and executives.
"The SEC’s move is unprecedented. It could start a trend which could spook the business community and discourage investors. It could also cause instability," the businessmen warned.
They said starting any investigation based on text messages from unidentified senders is not only unprofessional but can also be interpreted as harassment.
"Any company now that gets the ire of the SEC could be investigated without justification. We like to believe that the SEC has a set of guidelines governing investigation against corporate entities to avoid harassment," they pointed out.
The businessmen said it would be easy now for any individual or company with an axe to grind against a rival or would want to bring down a competitor to just send text messages for the regulatory commission to conduct an investigation.
"Where is the complainant when SEC decided to investigate First Resources? This is very elementary in judicial proceedings," the businessmen stressed.
Preliminary results of the SEC inquiry already showed that there has been no violation of the securities law by First Resources in its GSIS transactions.
"But the point here is the SEC, being a regulatory body, should be more circumspect in starting an investigation. Unsettling the market at this moment could be disastrous to the company," they added.