PSE cautions vs dealings with former bourse exec

MANILA, Philippines – The Philippine Stock Exchange has issued a warning to the investing public against seasoned stock trader Jose Cecilio “Jay” Penaflor, the PSE’s former assistant head of market education, who allegedly pools funds from investors on behalf of the PSE and PSE’s accredited brokers.

In a published advisory, the PSE, however, said Penaflor has not been connected with the PSE since 2013.

Furthermore, the PSE said Penaflor is not connected with registered PSE brokers, Regina Capital Development Corp, H.E. Bennett Securities Inc. and Venture Securities, Inc.

“Any transaction made by him on behalf of the PSE and/or the brokers will not be honored by said companies,” the PSE said.

The PSE issued the advisory amid complaints from small investors they were victimized by Penaflor.

The PSE advised investors to transact only with authorized agents and traders of PSE trading participants.

The PSE advisory has been making the rounds among stock market players including veteran brokers who know Penaflor as a seasoned trader and not one who would be involved in allegedly fraudulent activities.

During his stint at the PSE, he was considered as one of the chief architects of PSE’s big market education projects such as the PSE Academy Website, Television, Radio, Print campaigns, the PSE Bull Run, PSE Financial and Investment Literacy Roadshows, and the PSE Integrated Viral Education Strategy, which became the nucleus of PSE’s market education campaigns.

In 2014, Penaflor filed a case against the PSE for “illegal dismissal” before the National Labor Relations Commission but lost the case in May 2015.

According to his profile, he is currently a capital markets and economics consultant in Congress.

An email sent by The STAR to Polistrato, a consultancy company Peñaflor owns, was not answered as of press time.

Last week, the Securities and Exchange Commission (SEC), likewise issued a warning against an individual who is formerly connected with the PSE.

In an advisory, the SEC’s Enforcement and Investor Protection Department said the individual allegedly pools funds from the public to be invested in PSE-listed stocks under the name of his company.

The individual, who is not a registered salesman nor is his company registered with the commission to take investments from the public, has gained the confidence of the public through the public seminars and lectures on investments in stocks he conducts.

The SEC said he represents himself as associated with the PSE and certain registered brokers but the regulator stressed he is not registered with the SEC.

In its advisory, the SEC said the scheme employed by the individual appears to constitute fraudulent transactions under Section 26 and violation of Section 28 of the Securities Regulation Code and its Implementing Rules and Regulations.

“In this regard, the public is hereby advised to exercise caution in dealing with this person and in investing their money in what appears to be high yield investment,” the SEC said.