Circular

This is to clear the misconception in the media of the pronouncement made by the DG of SEC regarding the grace period of December 31, 2016 given to non-capitalized CMOs.

The general public is to note that the deadline for recapitalization has not been extended. However, the Commission will commence the process of cancellation of registration of non-capitalized CMOs after December 31, 2016. During this grace period, any CMO that provides evidence of compliance would be admitted.

The current position is that the non-capitalized CMOs remain suspended.

Signed Management

May 9, 2016