PH SEC Warns Octafx For Unauthorized Firm

Manila, Philippines - The Philippines Securities and Exchange Commission (SEC) has recently released a public advisory warning against engaging in investment and trading activities with OCTAFX/OCTA TRADING. This firm, found to be operating without necessary licenses, has been actively promoting its services through various social media platforms, targeting Filipino investors.

According to the SEC's statement, OCTAFX/OCTA TRADING is not permitted to sell or offer securities in the Philippines. The Securities Regulation Code (SRC) defines securities as investment instruments such as stocks, bonds, and options that must be registered with and authorized by the SEC before they may be issued to the public. The lack of registration and authorization of OCTAFX/OCTA TRADING raises significant legal and financial risks for potential investors.

OCTAFX/OCTA TRADING's online presence spans across its website, the Google Play store, and the Apple App Store, showcasing over 300 financial instruments from various asset classes such as foreign shares, index funds, commodity derivatives, and foreign currency pairs. The platform also advertises leverage trading with a maximum ratio of 1:500, a feature that can significantly amplify both gains and losses.

Registration and Compliance: A Must for Investor Safety

Under Philippine law, particularly the Securities Regulation Code, there are stringent requirements for companies offering securities. These include:

1. Registration of Securities: Companies must register their securities with the SEC, providing detailed information like issuance price, use of proceeds, and the nature of the securities.

2. Issuer Requirements: Securities must be issued by a corporation or a licensed dealer, both of which should be registered in the Philippines.

3. Secondary License for Public Offering: The issuer must possess a secondary license to sell or offer securities to the public.

According to the SEC's database, OCTAFX/OCTA TRADING does not meet these requirements. The company is not registered as a corporation in the Philippines and operates without the necessary license or authority.

The SEC's advisory underscores the importance of exercising caution before investing in unregistered online investment platforms. Unregistered entities often lack the necessary oversight and investor protection measures, posing a high risk of fraud and financial loss.

Individuals who serve as salesman, brokers, dealers, agents, representatives, promoters, recruiters, influencers, endorsers, or facilitators for unregistered firms such as OCTAFX/OCTA TRADING may face criminal prosecution under Section 28 of the Securities and Exchange serve. According to Section 73 of the SRC, violations may result in severe penalties such as a maximum fine of Five Million Pesos (P 5,000,000.00) and imprisonment for up to twenty-one years, or both.

Further emphasizing its commitment to investor protection, the SEC reiterates its previous advisory titled “Advisory against Dealing with Non-Registered Foreign Entities, Organizations, and Corporations.” This document advises the public to be vigilant and conduct thorough due diligence before engaging with any investment platform, especially those based outside the Philippines.

The SEC encourages the public to verify the registration and license status of any firm offering investment opportunities. This may be accomplished by visiting the SEC's official website or calling their offices directly. Investors are also reminded to thoroughly grasp the nature of their investments, as well as the dangers involved, and to only invest what they can afford to lose.

In Conclusion

The advisory against OCTAFX/OCTA TRADING is a part of the SEC's ongoing efforts to safeguard Filipino investors from fraudulent and unregulated financial schemes. The Commission remains dedicated to promoting a safe and regulated investment environment in the Philippines, ensuring that all entities offering securities comply with the country's legal requirements.