SEC warns about Platinum Coin, plans SME fund-raising
THE Securities and Exchange Commission (SEC) has warned the public against Platinum Coin, which the regulator said is not authorized to solicit investments.
Platinum Coin is said to have been offering investments for a minimum amount of P1,000 up to P650,000. It also transacts as Platinum Coin Pawnshop.
Investors in the company are promised to earn 15% to 30%, plus a one-time 5% outright commission, apart from an option to earn a 2.5% monthly income if they applied as an official team leader.
The team leaders are said to be given a cash gift of P10,000 to P70,000, and P500 worth of load weekly. Platinum Coin investors are also promised a 20% yearly bonus.
The regulator found out that the company also engages in online lending business without securing a certificate of authority to operate as a lending company.
In its investigation, the SEC found out that the investment-taking company is not registered as a corporation nor as a partnership. The entity is operating without a license to take investments from the public.
In a separate press release, the SEC said it will be embarking on a nationwide roadshow that seeks to support the growth of micro, small and medium enterprises (MSMEs).
The roadshow, which will be piloted on Feb. 15 in Davao City, is seen to help MSMEs in tapping the capital market including crowdfunding platforms.
“Under the Crowdfunding Rules, SMEs no longer have to register securities with or secure approval directly from the SEC before they can solicit investments from the public. SMEs need only conduct their fundraising activity with a crowdfunding intermediary, funding portal, or crowdfunding platform registered with the SEC,” the commission said.
An MSME can raise as much as P10 million from any investor, and up to P50 million from qualified investors, within a 12-month period.
Three crowdfunding intermediaries have registered to date, namely: Investree Philippines, SeedIn Technology, Inc., and Eastern Securities Development Corp.
SEC Chairperson Emilio B. Aquino said the nationwide roadshow aims to help MSMEs that are greatly affected by the pandemic.
“We at the SEC hope to stem their financial woes by providing possible solutions to these enterprises, particularly through the capital market and crowdfunding,” said Mr. Aquino.
The roadshow will be under the SEC’s Office for the Advancement of Strategic Investments in SMEs, which aims to encourage small entities to explore the capital market to acquire external financing.
The initiative is also part of the SEC’s goal of having at least 888 companies tap the capital market by 2024, or the 88th year of the regulatory body.
The roadshow will next be held in Cebu, Cagayan de Oro, Zamboanga, Bacolod, Legazpi, Iloilo, Tarlac, Baguio, the Calabarzon (Cavite, Laguna, Batangas, Rizal, and Quezon) region, and Metro Manila. — Justine Irish D. Tabile