Current Position on CMO Recapitalization Exercise

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