Advisory on Financial.Org
Posted 12 April 2018

 

ENFORCEMENT AND INVESTOR PROTECTION DEPARTMENT

SEC ADVISORY

This Advisory is prompted by information received by the Commission that individuals or group of persons representing a company named Financial.Org are soliciting investments from the investing public. According to a Reuters Article at http://www.reuters.com/article/us-britain-investment-financial-org-excl/exclusive-unregulated-british-firm-draws-asian-investors-idUSKBN1EZ1ME, Financial.Org is a UK company that describes itself as an education business, sponsors a Formula One team and manages hundreds of thousands of dollars for Asian investors.

However, the Monetary Authority of Singapore (MAS) placed Financial.Org in its list of unregulated persons who, may have been wrongly perceived as being licensed or authorized by MAS. Similarly, in its website, the Securities Commission Malaysia included Financial.Org in the list of those that are not authorized nor approved under the securities laws to deal in securities, trade in futures contract, advise on corporate finance, provide investment advice, financial planning and/or fund management services related to securities or futures.

The public is hereby advised that Financial.Org is not registered with the SEC as a corporation or partnership and is not authorized to solicit investments from the public in the Philippines, not having secured prior registration and/or license to solicit investment as prescribed under Section 8 of the Securities Regulation Code (SRC).

The Commission reiterates its warning that those who act as salesmen, brokers, dealers or agents of entities without authority to solicit investments, in selling or convincing people to invest in the investment scheme being offered by said entities including solicitations or recruitment through various forms of media such as but not limited to the internet such as social media may be prosecuted and held criminally liable under Section 28 of the Securities Regulation Code and penalized with a maximum fine of Five Million pesos (P5,000,000.00)  or imprisonment of Twenty One (21) years or both pursuant to Section 73 of the SRC.

Accordingly, those who invite or recruit other people to join or invest in this venture or offer investment contracts or securities to the public may be held criminally liable or accordingly sanctioned or penalized in accordance with the Supreme Court decision in the case of SEC vs. Oudine Santos (G.R. No. 195542, March 19, 2014).

In view thereof, the public is hereby advised to exercise prudence before investing in these kinds of activities and to take the necessary precaution in dealing with Financial.Org or its representatives.                       

Furthermore, the names of all those involved will be reported to the Bureau of Internal Revenue (BIR) so that the appropriate penalties and/or taxes be correspondingly assessed.

Should you have any information regarding the operation of the subject entity in the Philippines, please call the Enforcement and Investor Protection Department at telephone number 818-6047.

For the guidance of the public.