THE Securities and Exchange Commission (SEC) has revoked the broker-dealer registration of Mount Peak Securities Inc. after finding the company guilty of regulatory breaches, fraudulent practices and serious deficiencies in its financial reporting and internal controls.
The SEC’s Markets and Securities Regulation Department (MSRD) found that the firm violated multiple provisions of the Securities Regulation Code and its implementing rules.
Mount Peak was fined more than P17 million and the licenses of company president Wilster Gaweco and company officer Marie Stephanie Gaweco were revoked. Both were permanently disqualified from becoming registered market participants again.
The SEC said the case stemmed from an investigation by the Capital Markets Integrity Corp., which uncovered irregularities in the company’s books, back-office systems and trading activities.
Among the most serious findings was the use of a dummy account allegedly controlled by the company president for personal benefit, as well as unauthorized transactions executed under a client’s name.
The regulator also cited falsified or inconsistent customer records, including discrepancies in stockholder information and a forged signature on account documents, alongside repeated violations of ethical trading standards.
The SEC further found that Mount Peak failed to meet risk-based capital adequacy requirements and submitted inaccurate reports to appear compliant, even though its actual capital had fallen below regulatory thresholds several times.
The company also allegedly failed to properly safeguard client funds, with reports showing lapses in reserve accounts and instances of zero balances in customer cash holdings during certain months.
According to the SEC, which issued its decision against Mount Peak on Feb. 13, the “myriad irregular practices” indicate an ineffective compliance system within the firm, including weak supervision, unreliable record-keeping, and systemic reporting inconsistencies.
Mount Peak has filed an appeal to the SEC en banc.
NAZYLEN JOY MABANGLO