The SEC DavEO emphasized that it has received reports from local government units about certain non-profit groups in the region using their SEC registration certificates to legitimize unauthorized investment taking activities, urging individuals to pay membership fees in exchange for financial gains, scholarships, housing or livelihood assistance.
The Commission clarified that non-stock, non-profit corporations, including foundations, are strictly prohibited from soliciting investments from the public without a secondary license.
Under Section 8 of Republic Act No. 8799, also known as The Securities Regulation Code, selling or offering securities without an SEC Certificate of Permit to Offer Securities for Sale.
Violators of the Securities Regulation Code who act as salesmen, brokers, dealers, or agents in unauthorized investment schemes face penalties of up to PHP 5 million in fines, 21 years in prison, or both.
The Commission urges the public to report any unauthorized investment solicitations to the Enforcement and Investor Protection Department at epd@sec.gov.ph.
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