Regulators

Philippine Securities and Exchange Commission (SEC)

The SEC or Commission of the Philippine Securities and Exchange Commission is a government regulatory agency responsible for regulating the markets for companies, capi...

Forex Regulatory Tips

In the Philippines, foreign exchange transactions are classified as commodity futures contract transactions, and foreign exchange is classified as commodity futures.
The English definition of the original text is as follows: The public is advised that TRADING OF COMMODITIES FUTURES CONTRACTS IN THE PHILIPPINES (including Foreign Exchange Trading as consistently held by the Commission).
Note: Currently, the Philippine SEC’s rules on commodity futures contracts (including foreign exchange) are suspended, which means that there is currently no type of company in the Philippines that can provide foreign exchange-related transactions. A screenshot of the email reply from the Philippines SEC on foreign exchange transactions is as follows:

The translation is as follows:
Pursuant to Section 11 of the Philippine Securities Regulatory Act ("SRC"), "No one may issue, sell, or enter into a commodity futures contract, except where it is in the public interest to comply with the regulations of the SEC. The SEC will formulate rules for commodity futures contracts. , to ensure the establishment of a fair and transparent trading environment for commodity futures contracts and protect the interests of investors." -- This includes foreign exchange transactions that are continuously regulated by the SEC in the Philippines. However, commodity futures trading in the Philippines (including foreign exchange transactions that are continuously regulated by the SEC in the Philippines) and related rules remain suspended.

Forex Definition

The foreign currency trading contract consists of the following elements: 1) It is a financial instrument; 2) Its value changes with the value of the underlying asset, the so-called underlying asset is the foreign currency pair selected by the investor; 3) It requires A small amount of investment, that is, leveraged investment; 4) The contract is settled on a certain day in the future, and the settlement method is liquidation, not delivery. There is no doubt that a foreign currency exchange contract is a derivative and falls within the definition of a security.
A derivative is a financial instrument whose value varies with interest rates, security prices, commodity prices, foreign exchange rates, price indices, credit ratings or credit indices, or similar variable or influencing factors. Derivatives require no initial investment or little net investment relative to other types of contracts that respond similarly to changes in market conditions. Derivatives settle at a future date.
Commodity futures contracts are contracts to produce or deliver a specified quantity and quality of a commodity or cash value at a specified time in the future, usually offset before the delivery date, and include standardised or margined contracts for commodity futures, commodity options and commodity leverage.
Commodities means any goods, goods, services and benefits, including any of the above groups or indices. Commodity equity contracts can be realized now or in the future.
Public trading of commodity futures contracts and SEC rules regarding futures trading shall remain suspended until otherwise ordered by the SEC and shall not conflict with applicable rules and notices of entities and individuals within the jurisdiction of the BSP (Bank of the Philippines) engaging in commodity futures contracts .

List of Regulated Companies

LIST OF FINANCING COMPANIES WITHCA.pdf
Note: As of December 31, 2017, there were a total of 673 financial firms regulated by the SEC in the Philippines. The SEC of the Philippines has not formulated any foreign exchange rules for the time being, so it does not currently supervise foreign exchange companies in the Philippines.

Organization Profile

The Securities and Exchange Commission (SEC) or the Commission is a government regulatory agency responsible for regulating companies, capital market participants, and markets for securities and investment vehicles. The committee's mandate is to regulate the sale and registration of securities, exchanges, brokers, dealers and salespeople, supervise more than half a million registered companies, and evaluate the Financial Statements (FS) filed by all registered companies. The SEC also develops and administers capital markets.
1. Powers and functions
(1) To have jurisdiction and oversight over all corporations, partnerships or associations of the assignees of the main franchise and/or government-issued licenses;
(2) To formulate policies and recommendations related to the securities market, to advise Congress and other government agencies on all aspects of the securities market, and to propose legislation and amendments;
(3) Approve, reject, suspend, revoke or request amendments to registration declarations, registration and license applications;
(4) To regulate, investigate or supervise the activities of personnel to ensure compliance;
(5) Supervise, monitor, suspend or take over the activities of exchanges, clearing houses and other SROs;
(6) Sanctions for violations of the law and the rules, regulations and orders issued thereunder;
(7) To formulate, approve, amend or repeal regulations, statutes and orders, express opinions, guide and supervise compliance with these regulations, statutes and orders;
(8) Enlist the assistance and support of the government, civil or military, and any private institution, company, association or individual, and/or entrust any and all law enforcement agencies, companies or individuals to perform the powers and functions of this Code;
(9) Issue cease and desist orders to prevent fraud or harm to the investing public;
(10) Directly and indirectly punish acts of contempt of the Commission in accordance with the relevant provisions and penalties stipulated in the Rules of Court;
(11) To compel officers of any registered company or association to convene a meeting of shareholders or their members under their supervision;
(12) To call witnesses to testify in court and, in any appropriate case, in accordance with existing laws and regulations, to order the inspection, search and seizure of all documents, records, tax returns and books of account of any entity or individual under investigation;
(13) Suspend or revoke its franchise or registration certificate for any reason provided by law, after due notice and hearing from the company, partnership or association; and
(14) To exercise other powers which may be provided by law, and express powers conferred on the Commission by law for the achievement of the object and purpose of those laws, and powers which may be implied by law, or which are necessary or incidental to the exercise of such powers.
2. History
The SEC was established on October 26, 1936 under Federal Act No. 83 or the Securities Act. Given the boom in the Philippine stock market at the time, it was established out of a need to safeguard the public interest. The SEC began operations on November 11, 1936. Its main functions include registration of securities, analysis of securities for each registration, assessing the financial position and operations of applicants for securities offerings, screening applications for broker or dealer licenses, and overseeing stock and bond brokers and stock exchanges. The agency was abolished during the Japanese occupation and replaced by the Executive Council of the Philippines. It was reactivated in 1947 with the restoration of the federal government. Due to changes in the business environment under Ferdinand Marcos, the agency was reorganized on September 29, 1975 as a panel of 3 commissioners and was given quasi-judicial powers under PD902-A.
In 1981, the Commission added two commissioners and expanded to two departments, one for prosecution and enforcement and the other for oversight. On December 1, 2000, the Philippine Securities and Exchange Commission was restructured under the provisions of R. A. 8799 (aka the Securities Regulations).

Regulatory Inquiries

The first step is to open the official website of the Philippines SEC http://www.sec.gov.ph/, and find Registered Firms/Individuals at the bottom of the official website;

Step 2 Click "Registered Firms/Individuals", then the following page will appear:

Step 3 Find "FINANCING COMPANIES", click "Directory of Financing Companies", and the following page will appear:

Note: The SEC in the Philippines has not yet formulated foreign exchange-related regulations, so it does not currently supervise companies engaged in the foreign exchange category.

Penalties

1. Issue a reminder notice to the public
On October 4, 2016, the Philippine Securities and Exchange Commission SEC learned that ASHOKFX was engaged in the issuance, sales and solicitation of unregistered securities through the online trading platform METATRADER4, such as foreign currency pairs and CFDs, and issued a notice to remind the public: ASHOKFX did not report to the SEC. registered, its foreign currency pairs and CFD trading is not authorized by the SEC, so do not invest in securities issued or sold by this company.
2. Issue end and stop orders with no actual mandatory effect
On May 14, 2015, the SEC of the Philippines has issued a Closing and Cessation Order, ordering METISETRADE, INC. and its corporate officers, directors, agents, representatives, assigns and all agents to immediately cease trading foreign currencies on its METATRADER 5 platform Trading Contracts and CFDs on high priced commodities or any other commodities of a similar nature. However, METISETRADE, INC. continued to engage in prohibited activities following the cease and desist order issued by the SEC in the Philippines. As a result, on June 9, 2015, the SEC issued an announcement informing the public of the illegal issuance, solicitation and sale of unregistered securities by METISETRADE, INC., including foreign currency transactions and commodity futures contracts, also known as contracts for difference.

Related Links

Philippine Department of Finance: http://www.dof.gov.ph/
Philippine Anti-Money Laundering Organization: http://www.amlc.gov.ph/
Philippine Statistics Authority: https://psa.gov.ph/

Contact information

Tel:( 632) 818-0923Fax:( 632) 818-5293
Online consultation/complaint/suggestion: http://imessagemo.sec.gov.ph/login.php
Email: [email protected]
Address: Secretariat Building, PICC Complex, Roxas Boulevard, Metro Manila Philippines

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