2013
PROPOSED GUIDELINES ON THE OUTSOURCING OF FUNCTIONS BY BROKER DEALERS
WHEREAS, Section 2 of the Securities Regulation Code ("SRC") declares that it is the policy of State to, among others, establish a socially conscious, free market that regulates itself, and to promote the development of the Philippine securities market;
WHEREAS, Section 28.1 of the SRC provides that no person shall engage in the business of buying or selling of securities in the Philippines as a broker or dealer, or act as a salesman, or an associated person of any broker or dealer unless registered as such with the Commission;
WHEREAS, the Commission recognizes that as the Philippine capital market develops and expands, the volume of activities undertaken by brokers and dealers increases, and it becomes more cost effective for brokers and dealers to outsource certain activities to third party service providers ("service providers");
WHEREAS, the Commission understands that breaches by service providers in their outsourcing arrangements with brokers and dealers may lead to disruptions in the Philippine securities market, with negative consequences to the public;
WHEREAS, the SRC authorizes...
