Trading

SEC and NTC Take Action Against OctaFX, MiTrade for Offering Unregistered Securities

In a decisive move to shield investors, the National Telecommunications Commission (NTC) has enacted a directive, prompted by the Securities and Exchange Commission (SEC), to immediately restrict access to OctaFX’s website and applications. This action is in response to identified breaches of the Securities Regulation Code and the Revised Corporation Code of the Philippines.

Through a memorandum issued on 8 March, the NTC is supporting the SEC’s bid to halt the spread of OctaFX’s unlicensed operations, which have been deemed detrimental to the economic well-being and investment security of Filipinos.

Expressing serious concerns, the SEC in a letter from 27 February pointed out the risk presented by public access to OctaFX’s services. This stems from OctaFX’s unauthorised offer of over 300 financial instruments, including leveraged trading options, without securing the necessary regulatory clearance as mandated by the national Securities Regulation Code.

The SEC had previously issued a warning about OctaFX in September 2023, indicating that the platform was operating without registration in the Philippines and without the requisite authorisation to sell or offer securities. A similar advisory was issued regarding MiTrade, another platform found to lack the necessary regulatory permissions to operate, yet offering a range of financial instruments to the public.

This move by the NTC to block access to these platforms follows the SEC’s strategy to clamp down on investment scams and unregulated financial schemes. SEC Chairperson Emilio B. Aquino acknowledged the NTC’s contribution to this effort, underscoring the ongoing partnership between the two agencies in combatting illegal investment operations.

Emilio B. Aquino

“The directive of the NTC will greatly help in preventing the proliferation of investment scams. The SEC and NTC will continue to work closely together to take similar actions on other platforms facilitating illegal investment-taking activities and other predatory financial schemes,”

commented the SEC Chairperson.

The narrative surrounding OctaFX and MiTrade highlights the broader issue of entities operating within the Philippines without adhering to the legal requirements for offering investment opportunities.

These actions by the SEC and NTC serve as a stark reminder of the critical role of regulatory compliance in protecting the interests of investors and maintaining the integrity of the financial market.

Featured image credit: Edited from Freepik