PSE warns vs scheme using name of subsidiary CMIC

MANILA, Philippines — The Philippine Stock Exchange Inc. (PSE) is warning the public against a solicitation scheme using the name of its subsidiary, Capital Markets Integrity Corp. (CMIC).

CMIC said that it has received reports from several investors about a suspicious solicitation scheme using the name “Capital Market Intergrity” and “Capitalmarket-Intergritycorps.”

The investors had been asked to pay and recharge a fee for the availment of certain benefits and services.

According to CMIC, the investors have complained that they have yet to recoup the payments made.

CMIC said that it is not connected with Capital Market Intergrity and Capitalmarket-Intergritycorps.

As the independent audit, surveillance, and enforcement arm of the PSE, CMIC said that it investigates and resolves all violations of the securities laws by trading participants as well as trading-related irregularities and unusual trading activities involving issuers.

“In the fulfillment of its functions, CMIC neither resorts to any solicitation scheme nor engages in any of the purported acts of Capital Market Intergrity and Capitalmarket-Intergritycorps,” it said.

CMIC is urging the investing public to exercise the necessary degree of diligence in dealing with entities soliciting investments or employing similar means, especially those promising guaranteed returns.

The PSE said that all legitimate stock transactions are done through PSE-accredited trading participants or stock brokerage firms.

The complete list of these accredited stock brokerage firms are available in the PSE website.

“The PSE reminds the public that its subsidiary, CMIC, and its employees do not solicit investments and that any investment solicitation that is supposedly sponsored by CMIC did not come from, and is not authorized by, CMIC,” it said.

The PSE said that investment scams usually involve promises of big payouts, quick money or guaranteed returns and do not contain disclosures on the risks of investing.

“The exchange encourages the public to exercise extreme caution and vigilance in dealing with companies or individuals soliciting stock investments, especially those which promise guaranteed returnsor income,” it said.