THE SECURITIES and Exchange Commission (SEC) has teamed up with the National Telecommunications Commission (NTC) in combating investment scams, leading to the blocking of an unlicensed investment platform’s website.
“The SEC and NTC will continue to work closely together to take similar actions on other platforms facilitating illegal investment-taking activities and other predatory financial schemes,” SEC Chairperson Emilio B. Aquino said in a statement on Thursday.
The NTC issued a memorandum dated Feb. 21 to all internet service providers, mandating them to block the websites and apps of Mitrade due to violations against the Securities Regulation Code, Revised Corporation Code of the Philippines, and regulations enforced by the SEC.
Mitrade allegedly offered the trading of financial instruments across various asset classes like foreign currency pairs, foreign shares, index funds, and commodity derivatives.
“The operators of Mitrade appeared to be registered brokers and dealers oversees, and the securities and investments being offered likewise appeared to be registered in various countries,” the SEC said.
In a Feb. 14 letter, the SEC asked the NTC to block Mitrade’s website after the entity was found to be actively employing promotional campaigns on various social media platforms to entice Filipinos in investment and trading activities using its platforms.
The SEC flagged Mitrade in September 2023 and warned the public against transacting with the entity. Mitrade was not registered as a corporation in the Philippines and operated without the required license.
Entities offering any securities for public offering should register with the SEC under the Securities Regulation Code. The registration includes filing an application for registration and providing detailed information about the securities, including the issue price, use of proceeds from the sale, and nature of the securities.
The law also requires that the corporation issuing such securities must secure a license to sell or offer securities to the public from the SEC. Agents of the issuers must likewise register with the commission. — Revin Mikhael D. Ochave