Globalinks Securities and Stocks Inc. Resumes Operations After Lifted Suspension

Strategic Insights -

Globalinks Securities and Stocks Inc., a 34-year-old stock brokerage house, has been cleared to resume operations after its involuntary suspension was lifted. The Capital Markets Integrity Corp. (CMIC) had imposed the suspension on July 9 due to continuous breaches of capitalization requirements. Globalinks had been restricted from accessing the trading system of the Philippine Stock Exchange, the online depository system, and clearing facilities.

However, after receiving documents from Globalinks showing proof of capital infusion, CMIC lifted the suspension, allowing the brokerage house to resume its operations. Despite the resumption, Globalinks must ensure it consistently meets the minimum capitalization requirement of P5 million. Failure to comply will result in disciplinary actions.

The lifting of Globalinks' suspension comes as a reminder of the importance of adhering to capital requirements in the Philippine securities market. In August, CMIC also suspended Mount Peak Securities (MTPeak) for failing to comply with capital requirements and other securities laws. MTPeak, established in 1975 and a pioneer member of the Makati Stock Exchange, was ordered to inform its clients of the suspension and provide them with options to transfer their securities or execute sell transactions.

Key Takeaways:

  • Globalinks Securities and Stocks Inc. has resumed operations after its involuntary suspension was lifted by the Capital Markets Integrity Corp. (CMIC).
  • The suspension was imposed on July 9 due to continuous breaches of capitalization requirements.
  • Globalinks must ensure it consistently meets the minimum capitalization requirement of P5 million.
  • Failure to comply with capital requirements will result in disciplinary actions from CMIC.
  • Mount Peak Securities (MTPeak) was also suspended in August for failing to comply with capital requirements and other securities laws.
  • MTPeak was established in 1975 and was ordered to inform its clients of the suspension, providing them with options to transfer their securities or execute sell transactions.

Statistics:

  • Globalinks Securities and Stocks Inc. was suspended for continuous breaches of capitalization requirements from July 9.
  • The brokerage house was restricted from accessing the trading system, online depository system, and clearing facilities.
  • The minimum capitalization requirement for securities brokers is P5 million.
  • New brokers wishing to register must have at least P100 million in paid-up capital.
  • Globalinks has 34 years of experience in the stock brokerage industry.
  • MTPeak was established in 1975 and has a history of being a pioneer member of the Makati Stock Exchange.

Sources:

  • "Globalinks resumes operations after lift-off", _Inquirer_