How to protect your rights as an investor

Posted at 05/04/14 9:02 AM

MANILA, Philippines – Investors should be aware of their rights and have certain measures in place to protect themselves from scams and violations of stock market rules.

Grace Calubaquib, vice president and head of the surveillance department of the Capital Market's Integrity Corporation (CMIC), said one of the rights of investors is the right to timely disclosures.

The Philippine Stock Exchange recently launched an online disclosure system and mobile app called "Electronic Disclosure Generation Technology" (EDGE) to give investors access to corporate disclosures, financial reports, dividend announcements and company information on their smartphones. 

Investors also have the right to choose their own brokers, the right to invest in whichever stock they choose, and the right to invest whatever amount they want.

But Calubaquib said investors should first take the time to research on companies and brokers before investing.

On the CMIC website [http://www.CMIC.com.ph], investors can check a list of licensed brokers to prevent fraud.

“If you were approached by a salesman, you can check our website to see if he’s legit,” Calubaquib told ANC’s “On The Money.”

CMIC also explains revised trading rules of the Philippine Stock Exchange (PSE) on its website.

Calubaquib said the CMIC was created by PSE to answer the call for corporate governance in market regulation.

CMIC has jurisdiction over brokers and trading participants, and can implement fines or suspend brokers. They can also recommend the revocation of license of erring brokers.

If an issuer or investor is found at fault, CMIC refers to case the Securities and Exchange Commission.

“CMIC also has jurisdiction over some issuers, but only when it’s about unusual trading activity and trading-related irregularity,” Calubaquib added.