REDUCING THE COMMISSION CHARGED BY STOCKBROKERS TO CUSTOMERS

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. — 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.

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.

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conflict with, or contrary to, this Decree is hereby repealed or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