Filipino investors may soon gain easier access to U.S. and global equities after the Securities and Exchange Commission (SEC) approved GCash and Pluang PH to pilot investment platforms under its regulatory sandbox.
The sandbox, established under SEC Memorandum Circular No. 9, Series of 2024, allows financial technology firms to test innovative products in a controlled environment while the SEC monitors potential risks.
“This sandbox allows pioneering fintech firms to rigorously test their novel products, services, or business models in a live yet regulated setting. This crucial framework ensures that while innovation thrives, investor protection and market integrity remain paramount,” SEC Chairperson and CEO Emilio Aquino said Monday.
“The Commission actively embraces innovation that can enhance financial services, broaden access, and ultimately contribute to the nation's economic growth,” he added.
Pluang PH will test a mobile app enabling retail investors to trade select U.S. securities listed on the New York Stock Exchange and NASDAQ. The pilot will run for six months and involve up to 1,000 qualified buyers and retail users.
GCash, through its GStocks Global service, will offer app-based access to global equities. Its sandbox will last 24 months with up to 2 million participants.
During the pilot, the SEC may provide regulatory relief by modifying or waiving certain licensing, compliance, or registration requirements. Both firms must submit regular progress reports and secure SEC approval for any plan revisions.
The sandbox may end in one of three ways: successful completion, early termination by the SEC, or voluntary withdrawal. If successful, the products may be cleared for wider public rollout.
“Our commitment extends to creating an environment where responsible innovation can flourish, ensuring that the benefits of new technologies reach all Filipinos,” Aquino said.