UMVA has learned that a major financial regulator has taken drastic action against a securities firm, revoking its broker-dealer registration due to alleged regulatory violations and deficiencies.
The firm, Mount Peak Securities, Inc., was accused of violating 12 provisions under the Securities Regulation Code, prompting an investigation that uncovered irregularities in its business operations, records, and back-office systems.
According to information obtained by UMVA, the regulator's decision to revoke Mount Peak's registration followed an investigation that revealed alleged discrepancies in customer account records, internal controls, and capital adequacy compliance.
The regulator also revoked the salesman license of the company president and the license of an associated person, permanently disqualifying both from future registration and imposing hefty penalties totaling P17.25 million.
Sources close to the matter revealed that the company president admitted to using a dummy account for personal transactions, further complicating the firm's already troubled operations.
The regulator's ruling has been appealed and remains pending, but the decision marks a significant blow to Mount Peak and a warning to other firms operating in the industry.
In a separate but equally alarming development, the regulator warned the public against online lending platforms and mobile applications allegedly claiming affiliation with a lending brand, “MocaMoca,” and a company, Copperstone Lending Inc.
These platforms were linked to complaints involving alleged collection harassment, suspicious loan applications, and unauthorized transactions, prompting the regulator to advise the public to verify the legitimacy of lending and financing firms before transacting online.
The regulator's advisory serves as a stark reminder of the risks associated with unverified online platforms and the importance of protecting personal and banking information.
