Author Topic: In case a stock brokerage closes down (Read 4212 times)

prnd32 · « **on:** Aug 07, 2012, 03:58 PM »

What will happen to our stockholdings in case our stock broker firm shuts down its operation? Can we still redeem our shares?

I am not sure if this was already asked in this forum.

bauer · « **Reply #1 on:** Aug 07, 2012, 05:01 PM »

OO naman napag usapan na ito dito sa forum before.

Legally speaking, there is a stock investor insurance fund being promoted by our own PSE. pero nang nagkaroon ng closure ng brokerage, nagtago ang PSE sa responsibility. Ibig sabihin, hindi malaman ng mga kawawang stock investor paano makukuha ang karampot na insurance.

so dito sa pilipinas, buyer beware talaga ang labanan. kaya kung ako sa inyo, check carefully ang brokerage na paglalagyan nyo ng pera o investment katulad ng pagpili niyo sa inyong mga bangko. Huwag kayo pumili ng broker na sikat lang sa online trading kasi maganda ang online trading website. Tingnan ninyo rin ang financial strenght at integrity.

mahirap talaga ang sitwasyon dito sa atin, kulang sa investor protection ang ating gobyerno. pagnagsara ang isang brokerage, kadalasan, tangay rin ang pondo ng mga investors.

pmtmember · « **Reply #2 on:** Aug 07, 2012, 05:18 PM »

isn't it that brokers are just middlemen so that we can buy stocks sa isang company? If we will get a certificate, I think even if the brokerage will close down, we are still invested doon sa company. D ba kung meron ASM or anong meetings, hindi naman yong brokerage natin ang dala natin kundi ang pagiging investor sa company. At siguro meron yan parati electronic certificate na naka save kung saan.

Ang pwede lang maipit diyan is yang fund na hindi mo ginagamit. Yon ang pwede mawala.

Sa tingin ko lang ha

Hanap pa tayo ng ibang answer LOL

PMT Forum · « **Reply #2 on:** Aug 07, 2012, 05:18 PM »

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bauer · « **Reply #3 on:** Aug 07, 2012, 05:27 PM »

pmtmember,

tama ka kung hawak mo stock certificate, safe yan. Pero kung trading ang purpose mo at hindi naman long term (like more than 5 years), kapag ginawa mong stock certificate, hindi mo agad pwede i-trade. kailangan surrender mo muna ang certificate at wait for at least 7 working days before you can trade the stocks. hassle ito sa karamihan at baka ang desired price ay mawala na.

dapat talaga may investors protection insurance dito sa atin na totoo at hindi palabas lang.

stockbreaker · « **Reply #4 on:** Aug 07, 2012, 05:28 PM »

was there a scenario na nagclose ang isang stock brokerage in the Philippines? Care to share?

pmtmember · « **Reply #5 on:** Aug 07, 2012, 05:32 PM »

wala pa yata @stockbreaker

@bauer thanks, you got a point there. lalo na in my case na trader hehehehe

bauer · « **Reply #6 on:** Aug 07, 2012, 05:59 PM »

^ meron po, ito ang pinakahuli,

Police, NBI hunt down 5 stock-brokerage men

By Manila Standard Today | Posted on January 06, 2011 | 8:04am | 0 Comments

The Justice deparment has asked the National Police and the National Bureau of Investigation to hunt and arrest five officers and directors of HK Securities, all charged with the no-bail offense of syndicated estafa.

Justice Secretary Leila M. De Lima has ordered the arrest of Rodolfo V. Cruz, Cecilia F. Cruz, Primalee Cruz-Cordero, Abelardo R. Cordero and Melogen Buesa, officers of the stock brokerage firm, Which is accused of duping its clients of P106 million.

De Lima told police and NBI that since the court issued warrants of arrest for the accused last April 27, not one of them has been arrested.

Senior State Prosecutor Peter L. Ong was designated to prosecute the criminal cases filed against the accused after several clients of HK Securities filed complaints of syndicated estafa with the Justice Deparment against the accused as well as other non-executive directors for numerous fraudulent transactions involving the complainants’ funds and securities.

Earlier on Sept. 25, 2008, the Philippine Stock Exchange took over HK Securities on order of the Securities and Exchange Commission.
The company failed to account and produce securities of its clients worth P106 million, the PSE said.

HK Securities and its principal stockholder, Rodolfo V. Cruz, previously undertook but failed to pay the short security position.

Prior to the takeover, the PSE’s market regulation division suspended HK Securities from its trading operations based on various violations of the securities laws uncovered during an audit of HK Securities.

The PSE subsequently expelled HK Securities and began monetizing its trade-related assets. Jenniffer Austria

prnd32 · « **Reply #7 on:** Aug 07, 2012, 07:34 PM »

sa info sir bauer!

proudtobepinoy · « **Reply #8 on:** Aug 09, 2012, 08:31 PM »

I think when a brokerage firm closes down
walang magyayari sa stock holdings mo kung sa iyo nakapangalan yung stocks pero kung sa broker mo nakapangalan magkakaproblema ka talaga diyan

Tsaka hindi ba meron naman insurance that will cover up to a certain amount of your deposits in your brokerage firm when it closes down just like PDIC will cover for up to php500,000 (tama ba ito?) of your deposit if your bank closes down?

prnd32 · « **Reply #9 on:** Aug 09, 2012, 09:50 PM »

Quote from: proudtobepinoy on Aug 09, 2012, 08:31 PM

I think when a brokerage firm closes down
walang magyayari sa stock holdings mo kung sa iyo nakapangalan yung stocks pero kung sa broker mo nakapangalan magkakaproblema ka talaga diyan

Sa pagkakaintindi ko sa reply ni @bauer, kung wala kang physical stock certificate hindi mo na mababawi yung mga shares of stock mo.

Quote

Tsaka hindi ba meron naman insurance that will cover up to a certain amount of your deposits in your brokerage firm when it closes down just like PDIC will cover for up to php500,000 (tama ba ito?) of your deposit if your bank closes down?

Wala daw equivalent na PDIC sa stock brokers. PDIC only covers "bank" deposits.

decapolis · « **Reply #10 on:** Aug 09, 2012, 09:56 PM »

Online brokerages are using scripless trading sooo sa broker nakapangalan ang stocks pagkakaalam ko.

And mukhang sa (news) post ni Bauer mukhang wlang insurance like counterpart sa bank na PDIC

bauer · « **Reply #11 on:** Aug 10, 2012, 03:16 PM »

^ meron dati some form of insurance ang PSE, kaso ng pumutok yung problema sa HK securities, biglang nawala sa website ng PSE. Ang daya di ba? parang nangloko lang....

guapolo13 · « **Reply #12 on:** Oct 01, 2012, 04:00 AM »

Does anybodyknow what happened to magnum securities? Its inactive na eh i bought shares from that brokerage firm...

alacrity · « **Reply #13 on:** Oct 01, 2012, 04:35 AM »

Dapat siguro magkaroon tayo ng party list para mapansin tayo. Kung marginalized lang ang pag-uusapan eh tayong mga minor investors na yata ang pinaka-kawawa

xyphrus · « **Reply #14 on:** Oct 03, 2012, 02:42 AM »

Quote from: bauer on Aug 10, 2012, 03:16 PM

^ meron dati some form of insurance ang PSE, kaso ng pumutok yung problema sa HK securities, biglang nawala sa website ng PSE. Ang daya di ba? parang nangloko lang....

Yun nga din ang pagkakadinig ko before sa isang seminar, na kapag nagsara daw ang isang online/stock brokerage, you can claim your stocks sa PSE or you can choose another online/stock brokerage if you want to continue. Ang pag claim daw is kahit na printscreen or screenshot lang nung mga stocks mo, tapos i-print mo at yun ang ipapakita mo sa kanila. Katibayan na may binili kang particular stock sa nagsarang online brokerage. That is, as far as my memory is concerned.