Govt blocks websites, apps peddling investment scams
The government blocked certain websites and mobile phone applications offering investment opportunities without the necessary license.
The Securities and exchange Commission (SEC) said the National Telecommunications Commission (NTC) issued on February 21 a memorandum to all internet service providers, directing them to immediately block the websites and apps of Mitrade. The SEC said it requested the NTC to block the website of Mitrade.
“We thank the NTC for supporting our campaign against investment scams and other predatory financial schemes toward the protection of the investing public,” SEC Chairman emilio B. Aquino said.
“The directive of the NTC will greatly help in preventing the proliferation of investment scams. 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.”
In a letter dated February 14, the SEC requested for the blocking of Mitrade’s website after the agency found that the entity was actively employing promotional campaigns on various social media platforms to attract and entice Filipinos to engage in investment and trading activities using its platforms.
Mitrade offered the trading of financial instruments from a wide range of asset classes, such as 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 is said to be registered in various countries.
In the Philippines, however, the Securities Regulation Code requires the prior registration with the SEC of any securities for public offering within the country.
This involves the filing of an application for registration and providing detailed information about the securities, including the issue price, use of proceeds of the sale, and nature of the securities.
The Securities Regulation Code further requires that the corporation issuing such securities must secure from the SEC a license to sell or offer securities to the public. Agents of the issuers must be registered with the commission.
The operator of Mitrade was not registered as a corporation in the Philippines and operated without the necessary license to sell or offer any form of securities, to engage in the business of buying or selling securities, to operate as a broker or dealer, or to create or operate an exchange in the country.