SEC Exposes OCTAFX/OCTA TRADING’s Unauthorized Investment Activities in the Philippines

The Philippines Securities and Exchange Commission (SEC) has recently issued a stern advisory against OCTAFX/OCTA TRADING, emphasizing that the entity is not authorized to sell or offer securities in the country.

This announcement comes in the wake of reports that OCTAFX/OCTA TRADING has been actively promoting its investment and trading services on various social media platforms, specifically targeting the Filipino audience.

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What is OCTAFX/OCTA TRADING?

SEC said OCTAFX/OCTA TRADING is a platform that claims to offer trading in over 300 financial instruments encompassing a variety of asset classes, including shares (foreign), indices (index funds), commodity derivatives, and foreign currency pairs. It also facilitates leverage trading with a maximum leverage ratio of 1:500.

Although the operators of OCTAFX/OCTA TRADING are registered brokers/dealers in some overseas jurisdictions, and their securities and investment offerings are registered in various countries, they lack the requisite authorizations in the Philippines, SEC stated.

SEC’s Regulatory Requirements

In the Philippines, the sale or offering of securities and investment products to the public is strictly regulated under the Securities Regulation Code. The requirements include:

1. Registration of Securities: Securities offered must be registered with the Philippine SEC, necessitating the submission of detailed information about the securities.
2. Issuer and Dealer Registration: The issuing corporation or licensed dealer should be registered in the Philippines.
3. Possession of a Secondary License: The issuer must have a secondary license to sell or offer securities to the public.

The Current Status of OCTAFX/OCTA TRADING

According to the SEC’s database, OCTAFX/OCTA TRADING is not registered as a corporation in the Philippines and operates without the necessary license and authority to sell or offer any form of securities as defined under the Securities Regulation Code.

Public Advisory and Potential Legal Consequences

The SEC advises the public to exercise caution and be wary of investing in unregistered online investment platforms like OCTAFX/OCTA TRADING.

• In its advisory, the SEC also references its previous warning against dealing with non-registered foreign entities.
• Furthermore, individuals acting as representatives or promoters of OCTAFX/OCTA TRADING in the Philippines, even through online channels, could face criminal liability under Section 28 of the Securities Regulation Code.
• Such violations could result in severe penalties, including fines of up to Five Million Pesos (P 5,000,000.00) or imprisonment of up to Twenty-One years, or both.

Investors are encouraged to verify the registration and licensing status of investment platforms with the SEC to ensure compliance with local regulations and safeguard their financial interests.

This article is published on BitPinas: SEC Exposes OCTAFX/OCTA TRADING’s Unauthorized Investment Activities in the Philippines

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