Wednesday June 26 2024
News Source: Global Exchanges
Focus: Clearing & Settlement
Type: General
Country: Philippines
On 26th June 2024, the Securities Clearing Corporation of the Philippines (SCCP) has proposed amendments to the SCCP Rules and Operating Procedures which are meant to formalize the requirements needed for a Clearing Member to claim the refund of its contributions to the Clearing and Trade Guaranty Fund (CTGF) upon cessation of the business of such Clearing Member and/or upon termination of its membership with SCCP.
The first proposed amendment (under item (a) in both the relevant rule and operating procedure) provides that in order for a Clearing Member to obtain its CTGF contributions upon the cessation of its business and/or termination of its SCCP membership, it must show to SCCP that it obtained all applicable regulatory approvals and clearances given by the SEC, PSE, SCCP and the Capital Markets Integrity Corporation (CMIC) in order for it to cease doing business as a broker-dealer or trading participant.
The second proposed amendment (under item (c)) provides that such Clearing Member must submit a copy of its relevant audited financial statements and other evidence acceptable to SCCP (such as notarized certifications/undertakings and interim financial statements for shorter periods where audited financial statements are not available) showing that it has been absorbing its CTGF contributions rather than passing such contributions to its clients.
Finally, the third proposed amendment (under item (d)) provides that for the proceeds of the refund of the CTGF contributions, the authorized signatory(ies) of the Clearing Member shall provide the name of the Bank and the Clearing Member’s active bank account number where the proceeds of the refund of CTGF contributions will be credited to, or the Clearing Member may choose to provide the name and specimen signature of its representative who is authorized to receive check which must be payable to the order of the Clearing Member. As a matter of prudence, SCCP may not issue checks payable to Cash or Bearer for the proceeds of the refund of the CTGF contributions of the Clearing Member.
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