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Thursday, March 28, 2024

SEC issues advisory against investing in Philcrowd.com

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The Securities and Exchange Commission issued an advisory against investing in Philcrowd.com, an online company that is engaged in crowdfunding.

The corporate regulator said in an advisory posted on its website Philcrowd.com was not registered with the SEC and was also not authorized to solicit investments from the public.

It said that based on complaints it received, Philcrowd.com was luring investors to invest P2,500 as membership fee and become eligible to fund any business they like – from agribusinesses, food franchises, energy, real estate and more with target returns of 5 percent to 50 percent.

“The public is hereby informed that based on the records of the commission, Philcrowd.com is not registered with the commission as a corporation and/or partnership and is not authorized to solicit investments from the public as it has not secured the necessary license or permit from the SEC as required under Section 8 of the Securities Regulation Code,” the SEC said.

“The public is hereby warned that such investment schemes whether with the use of money or virtual currencies such as bitcoin, etherium, ripple, dash, litecoin, monero, SIBcoin, mooncoin, and many others are considered as securities subject to the regulatory authority of this commission,” it said.

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Philcrowd.com said in its Facebook page it filed incorporation papers with the SEC early this year.

“While we appreciate the fact that we are not cited as a scam, it is definitely a concern to us given the fact that we have filed our papers early this year, and we have been coordinating with your office to formalize crowdfunding rules in the Philippines,” Philcrowd.com said.

Crowdfunding refers to small- or limited-scale fundraising activity usually for startups, micro, small and medium enterprises using electronic platforms.

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