SEC kicks off 2020 with investor, borrower protection campaign
Credit to Author: KELVIN LESTER LEE | Date: Tue, 14 Jan 2020 16:20:13 +0000
RELENTLESS enforcement efforts against scamming groups and predatory lenders, supported by increased awareness and education activities, among others, marked 2019 for the Securities and Exchange Commission (SEC).
In support of the commission’s mandate to protect investors, as well as consumers, particularly borrowers, I have used this space to discuss the dangers and red flags of illegal investment schemes, including Ponzi schemes, and to underscore the rights of borrowers amid the increase in unscrupulous lending activities.
This year, the commission is keeping the momentum going.
On January 10, the SEC launched a series of seminars aimed at raising awareness and educating investors, borrowers and other stakeholders as it opened its newly renovated office in Zamboanga.
With brighter walls, refurbished tables and retiled floor, the SEC Zamboanga Extension Office welcomed stakeholders across Region 9 in the first seminar, where the commission discussed the nature of investment scams in the Philippines and presented updates on KAPA-Community Ministry International.
The seminar also served as a venue for the commission to explain SEC memorandum circulars (MCs) in relation to lending and financing companies, namely SEC MC 18, series of 2019 or the “Prohibition on Unfair Debt Collection Practices of Financing Companies (FC) and Lending Companies (LC)” and SEC MC 19, series of 2019 or the “Disclosure Requirements on Advertisements of Financing Companies and Lending Companies and Reporting of Online Lending Platforms.”
In a press conference, SEC Chairman Emilio B. Aquino emphasized the importance of investor protection seminars. To quote Chairman Aquino: “We’re pushing for enforcements.
So this time around, what we intend to do is to be more proactive. Which means that before a scam can happen, we will do the best that we can to prevent it. And we do that by educating our people. Because if we have an educated investing public, they will not just let go of their hard-earned money easily. The strategy now is to empower in investor education.”
He also acknowledged the crucial role of local media in helping the commission cover more ground in disseminating information and educating the public on how to protect themselves from fraud and other abuses in the corporate sector.
Meanwhile, allow me this opportunity to congratulate the SEC Zamboanga Extension Office, led by lawyer Jesus Salvador Uro, for taking on this important initiative.
More investor protection seminars are lined up in the region as part of the commission’s nationwide campaign on investment protection. In the meantime, I reiterate the commission’s advice for the public to coordinate with its offices for any concern about investment scams, illegal lending and other abuses in the corporate sector for immediate assistance.
I hope this will give the public a good idea of what the commission focuses on to protect its stakeholders from illegal investment schemes. Rest assured that we at the commission are working hard to effect changes that will be good for the business sector, the general public/stakeholders and, ultimately, the country.
Kelvin Lester K. Lee is a commissioner of the Securities and Exchange Commission (SEC). He is the co-chairman of the SEC Committee on Memorandum Circulars to Operationalize Revised Corporation Code Provisions. The views and opinions stated here are his own. Email your comments and questions to oclee@sec.gov.ph.