Commercial Law, 2015 Bar — Question X

ESSAY

Mr. and Mrs. Reyes invested their hard-earned savings in securities issued by LEAD Bank. After discovering that the securities sold to them were not registered with the Securities and Exchange Commission (SEC) in violation of the Securities Regulation Code (SRC), the spouses Reyes filed a complaint for nullity of contract and for recovery of a sum of money with the RTC. LEAD Bank moved to dismiss the case on the ground that it is the SEC that has primary jurisdiction over actions involving violations of the SRC. If you were the judge, how would you rule on the motion to dismiss?

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