Responding to an appeal of the Securities and Exchange Commission, the National Telecommunications Commission has started blocking websites and applications that provide investment opportunities without legal license.
The NTC issued a memorandum dated 21 February ordering all internet service providers to immediately block the websites and apps of MiTrade for violating the Securities Regulation Code, Revised Corporation Code of the Philippines, and SEC-enforced regulations.
SEC chairperson Emilio B. Aquino said on Thursday the NTC directive will significantly help stop the proliferation of investment scams.
“We thank the NTC for supporting our campaign against investment scams and other predatory financial schemes toward the protection of the investing public,” Aquino said.
“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,” he added.
Last month, the SEC requested the blocking of MiTrade’s website after it found that the entity was actively employing promotional campaigns on various social media platforms to attract Filipinos to invest and trade in its platform.
MiTrade offers the trading of financial instruments from a wide range of asset classes such as foreign currency pairs, foreign shares, index funds and commodity derivatives.
Disclosure requirements
The operators of MiTrade appeared to be registered brokers and dealers overseas, and the securities and investments being offered likewise appeared to be registered in various countries.
Notably, the Securities Regulation Code mandates that any securities offered to the public must be registered with the SEC beforehand.
The registration process involves applying detailed information about the securities, including the issue price, the use of proceeds from the sale, and the nature of the securities.
Moreover, the Securities Regulation Code mandates that any corporation issuing securities must obtain a license from the SEC to sell or offer securities to the public. Agents of the issuers must also register with the SEC.
However, the operator of MiTrade was not registered as a corporation in the Philippines, and it operated without the necessary license to sell or offer any form of securities, engage in the business of buying or selling securities, operate as a broker or dealer, or create or operate an exchange in the country.
In September 2023, the SEC issued an advisory warning the public against transacting on MiTrade.
