SECURITIES REGULATION CODE

(Part I)

Prepare for GRADED RECITATION covering the following:

SECTION 2 – DECLARATION OF STATE POLICY

• Blue Sky Law;
• BW Resources Controversy;

SECTION 3.1 – DEFINITION OF SECURITIES (MEMORIZE!)

• Definition of Investment Contract (Amended IRR of SRC);
• Power Homes Unlimited vs. SEC, GR 164182, Feb. 26, 2008;
• SEC vs. Prosperity.Com, GR 164197, Jan. 25, 2012;
• MJ Lhuiller vs. CIR, GR 166786, May 3, 2006

SECTION 4 – SECURITIES AND EXCHANGE COMMISSION

SECTION 5 – POWERS AND FUNCTIONS OF SEC

• Supervision over corporations –
SEC Memorandum Circular No. 11, s. of 2013;
• Power to issue cease and desist orders –
SEC vs. Performance Foreign Exchange, GR 154131, July 20, 2006;
• Grounds for suspension or revocation of certificate of registration –
PD 902-A, Section 5(i);
• Intra-corporate disputes (transfer of jurisdiction from SEC to RTC) –
PD 902-A, Section 5(b);
Two-tier tests:
Status or relationship of parties test
Nature of the question under controversy test
Aguirres vs. FQB+7, GR 170770, Jan. 9, 2013

SECTION 6 – INDEMNIFICATION AND RESPONSIBILITIES OF

COMMISSIONERS

SECTION 7 – REORGANIZATION OF SEC

SECTION 8 – REQ. OF REGISTRATION OF SECURITIES

SECTION 9 – EXEMPT SECURITIES (MEMORIZE!)

SECTION 10 – EXEMPT TRANSACTIONS (MEMORIZE!)

SECTION 11 – COMMODITY FUTURES CONTRACTS

SECTION 12 – PROCEDURE FOR REGISTRATION OF

SECURITIES

SECTION 13 – REJECTION AND REVOCATION OF

REGISTRATION OF SECURITIES

SECTION 14 – AMENDMENTS TO THE REGISTRATION

STATEMENT

SECTION 15 – SUSPENSION OF REGISTRATION