Regulatory Alerts2016-05-09
Current Position on CMO Recapitalization Exercise
The Securities Commission clarifies that the December 31, 2016 recapitalization deadline for non-capitalized Capital Market Operators (CMOs) remains unchanged, while the registration cancellation process will commence after that date. Non-capitalized CMOs currently remain suspended but may be readmitted during the grace period upon demonstrating compliance. Management requires affected operators to submit proof of compliance before the cancellation process fully takes effect.
This is to clear the misconception in the media of the pronouncement made by the DG of SEC regarding the grace period of December 31, 2016 given to non-capitalized CMOs. The general public is to
note that the deadline for recapitalization has not been extended. However, the Commission will commence the process of cancellation of registration of non-capitalized CMOs after December 31, 2016. During this grace period, any CMO that provides evidence of compliance would be admitted. The current position is that the non-capitalized CMOs remain suspended. Signed Management May 9, 2016