SEC upholds fine on PSE for late report

MANILA, Philippines - The Securities and Exchange Commission has upheld the P65,000 fine imposed against the Philippine Stock Exchange for violating its own disclosure rules.

The PSE said it received a letter from the SEC dated July 5, saying its request for reconsideration of the penalty has been denied.

The imposition of the penalty stemmed from the bourse’s failure to comply with Sec. 17.2(a) of the PSE Disclosure Rules pertaining to the submission of consolidated financial reports.

In particular, the PSE failed to submit on time a complete 2011 consolidated financial report covering its subsidiaries and operating units.

The PSE, however, had already settled the fine even before it filed a request for reconsideration of the penalty.

In seeking reconsideration of the penalty, the PSE asked for leniency since it was the first time it failed to attach the consolidated financial statement to its annual report.

Meanwhile, the PSE said it continues to discuss with the SEC the matter of harmonizing procedures in the enforcement of disclosure rules.

“We continue to hold and welcome these discussions with SEC on how to harmonize policies in the implementation of disclosure rules. We believe that these discussions will not only improve enforcement but also the market’s compliance in general to disclosure regulations,” PSE president and chief executive officer Hans B. Sicat said.