14 investment firms shut down in Davao region
Subscribe Now June 03, 2019 at 06:13am
The Securities and Exchange Commission (SEC), in its May 31 advisory, also warned the public of the fraudulent investment companies that continue to solicit investments on social media.
Morales said that PRO 11, a member of the Inter-Agency Task Force to Prevent Fraudulent Investment Scheme, would take action against the remaining 39 investment firms.
He said the firms would be subject to task force investigation this week to ensure that they “comply with the government regulations, and to prevent them from turning into an ‘investment scam’.”
“That’s the target of the inter-agency task force,” he said.
Other members of the task force included SEC, National Bureau of Investigation-Davao, Department of Trade and Industry-Davao 11, Bangko Sentral ng Pilipinas, and Philippine Information Agency-Davao.
The SEC said the Ponzi scheme “ordinarily collapses as fast as they are created while leaving its investors behind and unable to recoup their investments” and reminded the public that investment schemes, whether with the use of money or cryptocurrencies, are considered as securities subject to the regulatory authority of this Commission.
It said the sale of securities without a permit or license from the SEC was a violation of Section 8.1 of the Securities Reguation Code, which states that “securities shall not be sold or offered for sale or distribution within the Philippines, without a registration statement duly filed with and approved by the Commission.
Prior to such sale, information on the securities, in such form and with such substance as the Commission may prescribe, shall be made available to each prospective purchaser.”
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