MORNBFI Vol. 1 - Planters Development Bank

§ 4101Q.411.12.31§ 4101Q.4 Delivery of securitiesa. Securities sold on a withoutrecourse basis allowed under Subsec.4101Q.3(b) shall be delivered physically tothe purchaser, or to his designated custodianduly accredited by the BSP, if certificated,or by means of book-entry transfer to theappropriate securities account of thepurchaser or his designated BSP accreditedcustodian in a registry for said securities, ifimmobilized or dematerialized, while the COSor document of conveyance by the seller shallbe physically delivered to the purchaser. Thecustodian shall hold the securities in the nameof the buyer: Provided, That a QB/other entityauthorized by the BSP to performcustodianship function may not be allowedto be custodian of securities issued or sold ona without recourse basis by said non-bankfinancial institution (NBFI), its subsidiaries oraffiliates, or of securities in bearer form.The delivery shall be effected uponpayment and shall be evidenced by asecurities delivery receipt duly signed by theauthorized officer of the custodian anddelivered to the purchaser.Sanctions. Violation of any provision ofthis Subsection shall be subject to thefollowing sanctions/penalties:(1) Monetary penaltiesFirst offense - Fine of P10,000 a day foreach violation reckoned from the date theviolation was committed up to the date itwas corrected.Subsequent offenses - Fine of P20,000a day for each violation reckoned from thedate the violation was committed up to thedate it was corrected.(2) Other sanctionsFirst offense - Reprimand for the directors/officers responsible for the violation.Subsequent offense -(a) Suspension for ninety (90) dayswithout pay of directors/officers responsiblefor the violation;(b) Suspension or revocation of theaccreditation to perform custodianship function;(c) Suspension or revocation of theauthority to engage in quasi-bankingfunction; and/or(d) Suspension or revocation of theauthority to engage in trust and otherfiduciary business.b. The guidelines to implement thedelivery by the seller of securities to thebuyer or to his designated third partycustodian are shown in Appendix Q-38.Sanctions. Without prejudice to thepenal and administrative sanctions providedfor under Sections 36 and 37, respectivelyof R.A. No. 7653 (The New Central BankAct), violation of any provision of theguidelines in Appendix Q-38 shall be subjectto the following sanctions/penaltiesdepending on the gravity of the offense:(a) First offense -(1) Fine of up to P10,000 a day for theinstitution for each violation reckoned fromthe date the violation was committed up tothe date it was corrected; and(2) Reprimand for the directors/officersresponsible for the violation.(b) Second offense -(1) Fine of up to P20,000 a day for theinstitution for each violation reckoned fromthe date the violation was committed up tothe date it was corrected; and(2) Suspension for ninety (90) dayswithout pay of directors/officers responsiblefor the violation.(c) Subsequent offenses -(1) Fine of up to P30,000 a day for theinstitution for each violation from the datethe violation was committed up to the dateit was corrected;(2) Suspension or revocation of theauthority to act as securities custodian and/or registry; and(3) Suspension for 120 days without payof the directors/officers responsible for theviolation.(As amended by Circular No. 714 dated 10 March 2011, M-2007-002dated 23 January 2007, M-2006-009 dated 18 July 2006, M-2006 -002dated 05 June 2006 and Circular No. 524 dated 31 March 2006)Q Regulations Manual of Regulations for Non-Bank Financial InstitutionsPart I - Page 4