Organization and registration.
Section 4
SEC. 4. Organization and registration. — Investment Houses shall be organized in the form of stock corporations. The Securities and Exchange Commission shall not register the articles of incorporation of any Investment House, or any amendment thereto, unless it is satisfied from the evidence submitted to it: (a) That all the requirements of this Decree and of existing laws or regulations to engage in the business have been complied with; (b) That the proposed enterprise will not be in conflict with public interest and economic growth; (c) That the amount of capital, the proposed organization, direction and administration, as well as the integrity, experience and expertise of the organizers and the proposed managerial staff, provide reasonable assurance that the enterprise will be conducted with financial prudence. In determining compliance with the provisions of Subsections (b) and (c) above, the Securities and Exchange Commission shall consult the Monetary Board of the Central Bank of the Philippines. All applications for registration of the articles of incorporation of Investment Houses shall be accompanied by: (1) At least three copies of the proposed articles of incorporation; (2) A statement under oath of the educational background and experience of the organizers, directors, and the proposed managerial staff, as well as information on any position concurrently held by them in other financial or banking institutions, if any; (3) A projected statement of assets and liabilities of the proposed Investment House; (4) A tentative program of operation for one year, including its investment direction and volume; and (5) Such other information as the Securities and Exchange Commission may require in support of the application and to enable the Commission to determine the justifiability of establishing the proposed enterprise. Any enterprise already in operation and exercising the powers of an Investment House prior to the effectivity of this Decree shall, within six months therefrom, file an information sheet with the Securities and Exchange Commission in such form and containing such data as the Securities and Exchange Commission may, at its discretion, require, to enable the Commission to determine, in consultation with the Monetary Board, whether the enterprise meets the requirements of this Decree.