Points to Consider After the First Class

I hope the class understood the basic point in our class last Saturday regarding the structure of the capital markets and how the Securities Regulation Code operates in that environment. Essentially, the Securities Regulation Code (SRC) is meant to protect the savers from unsound practices and --in general-- any fraudulent conduct that may be perpetrated by the financial intermediaries or the spenders. These savers include the victims of the Multitel scam and the BW scam. For this reason, almost every aspect of the capital market is regulated by the law -- from the issuance of the securities to the trading of securities.

But here are some questions that linger and may be worthwhile reflecting on:

1. How come the perpetrators of the BW scam have not been convicted after all these years?

2. What has the SEC accomplished since the enactment of the SRC?

3. What is the level of compliance with the SRC among the professionals and entities in the securities business?

4. Can the public still trust the Philippine Stock Exchange (PSE) in spite of the fact that a lot of those involved in the BW scam are still operating in it?

Of course, a lawyer never asks a question unless he knows the answer.