Monday,fune l7,2rl:r9 Gl
Solonwants SEC to suspend bizpermits ofscammers
LAWMAKER has urged the
Securities andExchange Com-
mission (SEC) and even local
governmentunitstoimmediatelysus-
pend the business permits of invest-
ment scammers as he vowed to pushfor
the passage of the measure regulating
collective investrnent schemes in the
18th Congress.
Ako Bicol Rep. Alfredo Garbin
Jr. also asked the Bangko Sentral ng
Pilipinas, and the Depaltment of In-
formationandCommunicationsTech-
nology to take strong action against
scammers.
This year alone, Garbin said the
SEC issued 16 advisories warning the
public of illegal business practices and
dubious investment schemes.
"When -retirees, seniors, moth-
ers, OFWs, teachers plact! their hard-
earned income, savings, retirement
pay, or pension in'too good to be
true' investment schemes, the Securi-
ties and Exchange Commission must
do more than just issue advisories,"
Garbin said.
"The SEC must investigate, sus-
pend, revoke business documents,
and file charges directly with the
government prosecutors in the cit-
ies and towns where the head of-
fices ofthe suspected scammers are
located," he said.
Garbin also said the SBC mustalert
the Bangko Sentral ng Pilipinas and
the Anti-Money Laundeling Council
to the suspicious and ildgd business
behavior of the entities they found
to be engaged in investment scams,
so that the money trail can be closely
monitored and evidence gathered.
"When local government officials,
who are persons in authority, notice
that hundreds or thousands of their
constituents are victims of the scam'
mels, they should suspend or revoke
the business permits andlicenses ofthe
scammers," the congressman added.
Noting that the scammers use the
Internet and social media for coordi-
nation, communication, and control of
their investment schemes "the Depart-
ment of Justice and the Department
\roAq€ - 6/
of Information and Communications
Technology can also apply our coun-
try's laws against cybercrime."
Meanwhile, Garbin vowed to refile
the bill regulating collective invest-
ment schemes in 18th Congress.
The lower chamber alteady ap-
proved the measure providing for the
comprehensive regulatory and legal
framework fopcollective investment
schemes, but the Senate failed to pass
it during the 17th Congress.
The bill refers the collective in-
vestment scheme as any arrangement
whereby funds are solicited from the
investing public and pooled together
forthe purpose of investing, reinvest-
ing and/ot trading in securities or
other investment assets or different
classes thereof as allowed under this
proposedlaw.
Undet the bill, all CIS shall be
covered, regulated, governed and
must complywith the requilements,
rules and regulations set under this
proposed law.
It provides for tax treatment of
u
CIS which is intended to be sole tax
tegime for CIS products to the exclu-
sion of all other provisions ofthe cur-
rent tax laws.
It allows the organization of a Real
Estate Investment Trust (REIT), Ex-
change-Traded Funds and other form
of investment arrangements existing
and accepted in other international
markets, consistentwith the Interna-
tional Organization of SEC objectives
andprinciple of Securities Regulation.
Meanwhile, violators of the actmay
face administrative sanctions with a
penalty ofup to P1 million and crimi-
nal penalties with possible penalty of
up to P5 million.
House Committee on Ways and
Means Chairman Estrellita Suansing
of Nueva Ecira has said House Bill
8791 will provide more investment
opportunities for the lo* to middle
income individuals in CIS while giving
them access to the capital markets,
reap the benefits thereof, including
diversification and better returns for
i nvestments. ,rov€e /lt, ie N. Dela Ouz