REDUCING THE COMMISSION CHARGED BY STOCKBROKERS TO CUSTOMERS

• Number: Presidential Decree No. 154
• Sections: 4

Preamble

WHEREAS, the rate of commission charged by brokers in the

Manila Stock Exchange and the Makati Stock Exchange for each transaction

is admittedly high, compared with other stock exchanges in some cities

in developing countries of Southeast Asia;

WHEREAS, the stockbrokerage business is lucrative especially

when the stock market is bullish and the stock transaction is

voluminous;

WHEREAS, some forms of restraint or regulatory measures

should be provided by the Government by reducing the current rate of

brokers' commission from its present level to a more reasonable one in

order to provide incentives to investors to participate more actively in

the operation of stock markets, and thereby channel their savings to

needed industries and enterprises; and

WHEREAS, reduction of the current rate of brokers'

commission is deemed necessary in the public interest;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the

Philippines, by virtue of the powers in me vested by the Constitution as

Commander-in-Chief of ail the Armed Forces of the Philippines, and

pursuant to Proclamation No. 1081, dated September 21, 1972 and General

Order No. 1, dated September 22, 1972, as amended, do hereby order and

decree:

Section 1 Rate of Brokers' Commission.

SECTION 1. Rate of Brokers' Commission. — No

stockbroker using the facilities of any stock exchange shall charge,

collect or receive a commission of more than 1% of the value of each

transaction, whether a purchase or a sale, but in no case shall the

commission be less than twenty pesos (P20.00) for a transaction.

Section 2 Adjustment of rates to Prevailing Conditions.

SEC 2. Adjustment of rates to Prevailing Conditions. —

The Securities and Exchange Commission (SEC) shall have the power to

study and adjust from time to time the rate of commission herein

established to conform with prevailing conditions when the same is

necessary in the public interest, but in no case shall the change of

rate be more than once in one year.

Section 3 Penalty.

SEC. 3. Penalty. — Any violation of Section 1 of this

Decree shall be punished in accordance with the provisions of Section

40 (Penalties) of the Securities Act.

Any provision of law, executive order, rule or regulation in

conflict with, or contrary to, this Decree is hereby repealed or

modified accordingly.

This Decree is hereby made a part of the

laws of the land and shall take effect immediately.

Done in the

City of Manila, this 14th day of March, in the year of Our Lord,

nineteen hundred and seventy-three.

(Sgd.) FERDINAND E. MARCOS

President

Republic of the Philippines

By the President:

(Sgd.) ROBERTO V. REYES

Assistant Executive Secretary