DAVAO CITY — The Securities and Exchange Commission-Davao Extension Office (SEC DEO) has warned the public against non-stock, non-profit corporations, among them foundations, that are offering investment to the public without the necessary secondary license from the Commission.
“It has reached our attention that some non-profit groups in Davao City have been brandishing their registration certificates and collecting money from the people with a promise of future benefits,” the SEC DEO said.
“Non-stock, non-profit corporations, including foundations, are not allowed to solicit investments from the public. Again, any form of investment solicitation without a secondary license from the Commission is illegal,” the office added.
The office came out with the advisory after receiving information from partner local government units (LGUs) and government agencies that a scheme where people are invited to “register” with a promise of future gain or “assistance” is being perpetrated in villages in the city and in nearby cities and municipalities.
“The SEC DEO is coordinating with the Davao City Anti-Scam Unit, the Davao City Business Bureau and other partner LGUs to look into these reports for appropriate actions,” the office said.
Section 8 of Republic Act No. 8799, or The Securities Regulation Code, provides 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 SEC.
A maximum fine of P5 million or imprisonment of 21 years or both await those who act as salesmen, brokers, dealers or agents of entities engaged in unauthorized investment schemes, for violation of Republic Act No. 8799, or The Securities Regulation Code Securities Regulation Code, among others.
The Commission also encourages the public to report unauthorized investment solicitation activities to its Enforcement and Investor Protection Department through email at epd@sec.gov.ph.
