Registration of brokers, dealers and salesmen.
Section 19
SEC. 19. Registration of brokers, dealers and salesmen. —No broker, dealer or salesman shall engage in business in the Philippines as such broker dealer or salesman or sell any securities, including securities exempted under this Act, except in exempt transactions, unless he has been registered as a broker, dealer, or salesman pursuant to the provisions of this Section. An application for registration in writing in the office of the Commission in such form as the Commission may prescribe, duly verified under oath, which shall state the principal office of the applicant, whenever situated and its principal office and all branch offices in the Philippines, if any; the name or style of doing business; the corporate or business names; residences and business addresses of all persons interested in the business as principals, co-partners, officers and directors, specifying as to each his capacity and title; and the character of the business and the length of time the applicant has been engaged in said business. The Commission may also require such additional information, under oath, as to applicant's previous history, record and connection with other companies, as it may deem necessary to establish the good repute in business of the applicant. There shall be filed with such application an irrevocable written consent to the service of process upon the Commission in actions against such broker or dealer in the manner and form as herein provided. If the Commission finds that the applicant is of good repute and has complied with the provisions of this Act, including the payment of the fee herein provided, it shall register such applicant as a broker or dealer upon his filing a bond, or other security in lieu thereof, in such sum as may be fixed by the Commission which it may deem adequate for the protection of the public, running to the Government of the Philippines, and conditioned upon the faithful compliance with the provisions of this Act by said broker or dealer and by all salesmen registered by the latter while acting for him. Such bond shall be executed by a surety company authorized to do business in the Philippines. In lieu of such bond, he may file bonds of the Government of the Philippines. If a bond is filed, any person damaged by the failure of such broker or dealer or of any salesman registered by the latter while acting for him, to comply with the provisions of this Act, shall be entitled to sue the sureties under such bond and to recover the damages so suffered thereunder. If other securities are filed in lieu thereof, such person may subject .such securities to the payment of such damage. Upon the written application of a registered dealer or broker and general satisfactory showing as to good character and the payment of the fee prescribed in this Act, the Commission shall register as salesman of such dealer or broker such natural person as the dealer or broker may request. Such registration shall cease upon the termination of employment of such salesman by such dealer or broker. The names and addresses of all persons approved for registration as brokers, dealers or salesmen and all orders with respect thereto shall be recorded in a Register of Brokers, Dealers and Salesmen kept in the office of the Commission which shall be open to public inspection. Every registration under this Section shall expire on the thirty-first day of December in each year, but new registration for the succeeding year shall be issued upon written application and upon payment of the fee as hereinafter provided, without filing of further statements or furnishing any further information unless specifically required by the Commission. Application for renewals must be made not less than thirty nor more than sixty days before the first day of the ensuing year, otherwise they shall be treated as original applications. The fee for such registration and for each annual renewal shall be in such reasonable amount as may be determined by the Commission. Changes in registration occasioned by changes in the personnel of a partnership or in the principals, co-partners, officers or directors of any broker or dealer may be made from time to time by written application setting forth the facts with respect to such change. Every registered broker or dealer who intends to offer any security for sale shall notify the Commission in writing of his intention to do so. The notice shall contain the name of the broker or dealer and shall state the name of the security to be offered for sale. Whenever a broker or dealer shall have prepared such notice and shall have forwarded the same by registered mail, postage pre-paid and properly addressed to the Commission, such dealer or broker, as to the contents of such notice and the filing thereof, shall be deemed to have complied with the requirements of this paragraph. Any issuer of a security required to be registered under the provisions of this Act, selling such securities except in exempt transactions as defined in this Act, shall be deemed a dealer within the meaning of this Section and required to comply with all the provisions hereof. (14a)