NEWSFLASH

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CLUB SHARES SALESMEN NEED SEC LICENSES

Manila, Oct. 4, 1997 - Salesmen and traders of proprietary rights or shares of golf and country club shares are now required to apply for a Securities and Exchange Commission (SEC) license.

The SEC adopted the new rule in an en banc decision this week, noting that unlicensed traders have no accountability and therefore put investors and share buyers at risk.

SEC associate commissioner Danilo Concepcion said the policy was adopted to protect investors. She added that leniency has resulted in a lot of complaints from investors who bought unregistered golf shares from unlicensed salesmen.

Brokers and salesmen are required to apply for licenses except if dealing with securities issued by the government such as treasury bills and government securities which do not involve public offerings.

It is estimated that at least 70 percent of golf and country club issuers are unlicensed and therefore violating the securities law.

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