Enforcement of this Act.
Section 39
SEC. 39. Enforcement of this Act.— The Commission may make such investigations as it deems necessary to determine whether any person has violated or is about to violate any provision of this Act or of any rule, regulation, or order thereunder, or to determine whether any action in any court or any proceeding before the Commission shall be instituted under this Act against a particular person or persons, or with respect to a particular transaction or transactions. The Commission shall permit any person to file with it a statement in writing, under oath or otherwise as the Commission shall determine, as to all the facts and circumstances concerning the matter to be investigated. For the purpose of any investigation or any other proceeding under this Act, the Commission, or any officer thereof designated by it, empowered to administer oaths and affirmations, subpoena witnesses, compel their attendance, take evidence, and require the production of any books, papers, correspondence, memoranda, contracts, agreements, or other records which are relevant or material to the inquiry. In case of contumacy by, or refusal to obey a subpoena issued to, any person, the Commission may avail itself of its powers under Republic Act Numbered Eleven hundred forty-three or, if the same is ineffective, may invoke the aid of any Court of First Instance within the jurisdiction of which such investigation or proceeding is carried on, or where such person resides or carries on business, in requiring the attendance and testimony of witnesses and the production of books, papers, correspondence, memoranda, contracts, agreements, and other records. And such court may issue an order requiring such person to appear before the Commission or officer designated by the Commission, there to produce records, if so ordered, or to give testimony touching the matter under investigation or in question; any failure to obey such order of the court may be punished by such court as a contempt thereof. Any person who without just cause shall fail or refuse to attend and testify or to answer any lawful inquiry or to produce books, papers, correspondence, memoranda, contracts, agreements, or other records, if in his or its power so to do, in obedience to the subpoena of the Commission, shall upon convictions, be subject to a fine of not more than two thousand pesos or to imprisonment for a term of not more than one year, or both. No person shall be excused from attending and testifying or from producing books, papers, correspondence, memoranda, contracts, agreements, or other records and documents before the Commission, or in obedience to the subpoena of the Commission or any officer designated by it, or in any cause or proceeding instituted by the Commission, on the ground that the testimony or evidence, documentary or otherwise, required of him may tend to incriminate him or subject him to a penalty or forfeiture; but no individual shall be prosecuted or subject to any penalty or forfeiture for or on account of any transaction, matter, or thing concerning which he is compelled to testify or produce evidence, documentary or otherwise, after having claimed his privilege against self-incrimination, except that such individual so testifying shall not be exempt from prosecution and punishment for perjury committed in so testifying. Whenever it shall appear to the Commission that any person has engaged or is about to engage in any or practice constituting a violation of any provision of this Act or of any rule, regulation, or order thereunder it may, after proper investigation and hearing, order such person to desist from committing such act or practice and enforce the same in accordance with its powers under Republic Act Numbered Eleven hundred forty-three. The Commission, in its discretion, may also bring an action in the Court of First Instance of Manila to enjoin such acts or practices and to enforce compliance with this Act or any rule, regulation, or order thereunder. Upon a showing that such person has engaged or is about to engage in any such act or practice, a permanent or temporary injunction or decree or restraining order shall be granted without bond: Provided, however, That no such certificate of authority shall be issued by the Securities and Exchange Commissioner unless the applicant for agent, sub-agent or investment solicitor shall have passed a written examination given for the purpose by the Securities and Exchange Commission or the said applicant possesses a college degree. In any proceeding under this subsection to enforce compliance with section seven, the court as a court of equity may, to the extent it deems necessary or appropriate, take exclusive jurisdiction and possession of the investment company or companies involved and the books, records, and assets thereof, wherever located; and the court shall have jurisdiction to appoint a trustee, who with the approval of the court shall have power to dispose any or all of such assets, subject to such terms and conditions as the court may prescribe. The Commission may transmit such evidence as may be available concerning any violation of the provisions of this Act or of any rule, regulation, or order thereunder to the Secretary of Justice, who, in his discretion, may institute the appropriate criminal proceedings under this Act.