PSE warns vs fake solicitation letters

MANILA, Philippines — The Philippine Stock Exchange  (PSE) has warned the public against unscrupulous individuals soliciting money from investors allegedly on its behalf.

The PSE said it received reports that solicitation letters it purportedly issued last December 2017 are being circulated on social media groups.

“These letters bearing the PSE name and logo require participants to put up a one-time fee ranging from P2,500 to P5,000, in exchange for a guaranteed weekly return,” the PSE said in a recent memorandum.

PSE chief operating officer Roel Refran said anyone seeking to invest in the stock market must only go through the proper channels.

“We would like to remind the public that all stock market transactions should be coursed through PSE-accredited trading participants or stockbrokerage firms,” Refran said.

The PSE urged the public to remain vigilant against unscrupulous individuals, investment scams and other similar schemes.

“We encourage the public to inform the PSE if they have been shown these fake letters or have reason to believe that they are being defrauded with potential stock market investment scams,” Refran said.

The Securities and Exchange Commission  has also been cracking down on investment scams and similar fraudulent activities.

The corporate regulator launched a crackdown against loan sharks and other illegal lenders in October last year as part of the Duterte administration’s campaign against erring lenders.

Over 200 informal lenders have already applied for registration with the SEC after it initiated the crackdown.

SEC chairperson Teresita Herbosa said the agency has already issued two advisories to inform the public about prohibited lending practices under the law and encourage informal lenders.

In its advisory, the SEC said informal lenders facing complaints for violations of RA 9474 and/or those engaging in “fraudulent, oppressive and illegal practices in lending to borrowers” would be investigated for possible prosecution.