SEC Phase 2-7B Equities Securities Salesman (ESS) Exam - Philippines study plan

Map the structure of RA 8799 (Securities Regulation Code) section by section, writing a one-line summary of each provision that touches registration, licensing, or enforcement

Distinguish the roles of the SEC, SEC Enforcement and Investor Protection Department, and the Markets and Securities Regulation Department in regulating equities market participants

Identify which persons and entities must register as broker-dealers, associated persons, or salesmen under the SRC and its implementing rules, and what exemptions exist

Explain the consequences of operating without registration, including administrative sanctions, cease-and-desist orders, and criminal liability

Outline the licensing pathway for a securities salesman, including the sponsoring broker-dealer, examination requirements, and continuing education obligations

Describe the conduct rules that apply to registered market participants: fair treatment of clients, disclosure of conflicts, and prohibition on sharing compensation with unregistered persons

Apply recordkeeping and reporting duties to concrete scenarios such as order tickets, client instructions, and trade confirmations

Draft the internal escalation steps a salesman follows when a supervisor gives an instruction that appears to breach a conduct rule

Separate the elements of insider trading under the SRC from those of manipulation and front-running, and state the mental element required for each

Analyze fact patterns involving material non-public information, tipping, and trading by relatives or nominees to decide whether a violation occurred

Identify the recognized manipulation patterns in Philippine equity trading, including wash sales, matched orders, painting the tape, and marking the close

Explain why front-running client orders is prohibited even where no written rule names the practice, and describe how it is detected through order and trade surveillance

Trace the lifecycle of a PSE equity trade from order entry through matching, clearing at SCCP, and settlement at PDTC, naming each intermediary's role

Explain the T+2 settlement cycle, the concept of novation and central counterparty risk, and what happens when a client fails to settle

Describe the trading session schedule, price fluctuation limits, and circuit breaker mechanisms that affect order execution on the PSE

Distinguish the main board from the SME board and explain the listing and continuing listing requirements that affect what a salesman may tell clients

Write the sequence of steps for opening a client account, from KYC collection through risk profiling, approval, and periodic review

Apply suitability standards to three client profiles and recommend or decline an equity product for each, documenting the rationale

Identify money laundering red flags specific to securities accounts, including third-party funding, unusual settlement patterns, and structuring of deposits

Explain the covered person obligations under the Anti-Money Laundering Act as they apply to broker-dealers, including customer due diligence, beneficial ownership identification, and suspicious transaction reporting

Distinguish ordinary shares, preferred shares, and treasury shares by their voting, dividend, and liquidation rights, and explain how each is treated in valuation

Sequence the corporate actions that affect share count and price, including stock dividends, stock splits, rights offerings, and cash dividends, and compute the theoretical ex-price for each

Calculate intrinsic value using dividend discount and free cash flow models, and compute the key multiples used in Philippine equity research

Interpret moving averages, volume, and relative strength indicators, and state the main limitation of technical analysis in a thin or illiquid market

Apply the ethics standards expected of a registered salesman to conflicts of interest, gifts and entertainment, outside business activities, and personal account dealing

Evaluate disclosure obligations when recommending a security in which the firm or the salesman holds a position or has an underwriting relationship

Describe how client records, communications, and order documentation must be retained, for how long, and who may access them

Prepare a response to a hypothetical client complaint that alleges unsuitable advice, showing how records would be used to defend or correct the conduct

Consolidate all nine domains into a single revision sheet organized by the regulatory obligation each rule imposes rather than by chapter order

Complete timed practice sets weighted to the four heaviest domains and log every error by domain and by cause, whether knowledge gap or misreading

Re-derive from memory the prohibited practices list, the licensing requirements, and the recordkeeping periods without consulting notes

Simulate a client conversation in which a request would breach a rule, and deliver the refusal while preserving the relationship