sec crowd funding

The Securities and Exchange Commission (SEC) has approved the rules and regulations on crowd-funding schemes that allow Small Medium Enterprises (SMEs) to seek up to PHP 50 Million for expansion. Within a 12-month period, the crowd-funding framework limits the amount securities that can be sold by the issuer to PHP 10 Million to any investor or the general public. Qualified investors are not included in the limits above All crowd-funding transactions must be done through registered intermediaries which should comply with the requirements. Issuance of securities must be conducted exclusively through the platform of the intermediary that is registered with the SEC such as Broker-dealers, Investment houses or funding portals. A funding portal involved as an intermediary is prohibited from offering investment advice or recommendations, marketing the securities displayed on the platform, compensating people who solicit investments for securities displayed or referenced on its platform or managing investor funds or securities. The SEC may require additional capital in the form of cash or insurance to the proposed or actual operations of the crowdfunding intermediary. Crowd-funding is a form of seeking fundings for a project or venture by raising many small amounts of money from a large number of people. Read more in our articles including "SEC approves rules and regulations on crowd-funding" and "Security Bank now sends SMS on ATM transactions".