SEC-Davao issues warning vs non-profit groups reportedly soliciting investments
THE SECURITIES and Exchange Commission鈥s (SEC) Davao office issued a warning on Wednesday against foundations and other non-profit groups that were reportedly soliciting investments with guaranteed return through some form of assistance.听听
鈥It has reached our attention that some non-profit groups in Davao City have been brandishing their registration certificates and collecting money from the people with a promise of future benefits,鈥 the SEC extension office said in a press statement.听听
It did not name the suspected groups but said the reports came from the local governments of Davao City and nearby towns and cities.听听听
The scheme involves inviting people to 鈥register鈥 with the organization for a certain amount and a future 鈥assistance鈥 will be delivered.听听听
鈥Non-stock, non-profit corporations, including foundations, are not allowed to solicit investments from the public鈥 any form of investment solicitation without a secondary license from the Commission is illegal,鈥 it said.听听听
The SEC-Davao said it is already coordinating with local governments and other authorities 鈥for appropriate actions鈥 against the scheme.听听听
It stressed that 鈥those who act as salesmen, brokers, dealers or agents of entities engaged in unauthorized investment schemes鈥 could face a penalty of up to P5 million or 21 years in prison, or both.听
