HANDS-ON TRAINING
become very rampant primarily because broker/dealer firms allow
unlicensed individuals to undergo hands-on training. This is in
violation of Section 19 of the Revised Securities Act, which provides:
No . . . salesman shall engage in business in the
Philippines as such . . . salesman or sell any securities, including
securities exempted under this Act, except in exempt transaction, unless
he has been registered as a . . . salesman pursuant to the provisions
of this Section.”
In this connection, the following guidelines shall be observed with respect to hands-on training:
While hands on training will improve the competence of
securities representatives to perform their jobs, only registered and
licensed securities representatives/salesmen shall participate in
hands-on training. He/she shall be assigned to a specific Supervisor
appointed by the broker/dealer. The Supervisor, who is a duly registered
and licensed securities representative/salesman, will have direct
responsibility for the conduct and actions of the trainee-salesman and
will work closely with the latter to ensure that he applies the
knowledge acquired from the training and examination phases in a
professional manner. The Supervisor shall coach him on a point-by-point
basis. All recommendations made by the trainee-salesman to an investor
shall be concurred with by his appointed Supervisor and all orders
entered by a trainee-salesman on behalf of an investor must be co-signed
by the Supervisor.
The hands-on training shall be compulsory with respect to those who
are registered and licensed after recently passing the Certified
Securities Representative Exam and shall be for a period of at least two
(2) months after registration. As proof of compliance with this
requirement, the broker/dealer to which the registered and licensed
securities representative-trainee is affiliated shall submit to the
Commission a certification under oath of completion of the hands-on
training.
Adopted: 26 April 2000
(SGD.) ELIZABETH C. MARTIN
Director