TO address the frequent reports of financial scams perpetrated by greedy opporĀtunist schemers who routinely victimize gullible Filipinos who are easily swayed by promises of unrealistically big profits for their investment schemes, the proposal for the Securities and Exchange Commission (SEC) to establish and maintain its own online registry portal of all registered investment securities sounds a good idea.
The idea is the subject of House Bill 9216 by Albay Rep. Joey Salceda now filed in ConĀgress. Titled āScam Finder Act,ā it mandates the SEC to install its online portal as a āfirst line of deĀfenseā against investment scams in the country.
HB 9216 seeks to protect peoĀple against investment scams; asĀsist them in navigating better the financial landscape and avoid its pitfalls; teach them how to save and spend resources judiciously; and guide them where to invest and how to manage it to avoid financial troubles.
Interestingly, cases of financial scams often hog the headlines and hundreds of people fall prey to investment frauds every so often despite variants of the scam having been widely publiĀcized and public warnings issued against them.
Salceda attributes such freĀquent scams, like the Ponzi scheme, to lack of financial inforĀmation and gullibility of ordinary people. Exploitative and greedy schemers prey on vulnerable sectors who lack diligence or are prone to rash judgment when ofĀfered unrealistically high returns for their investments.
Many Filipinos, he lamented, ārush headlong to entrust their hard-earned money to dubiĀous investments which promise huge, often unrealistic returns in a short time, only to realize later their money had gone down the drain.ā
HB 9216 mandates the SEC to put up and maintain an online Philippine Registry of SEC-RegĀistered Securities, such as debt instruments including promisĀsory notes, equities, collective investment schemes including mutual funds, and such derivaĀtives that are registered with it and licensed to be sold to the public.
As lead agency, SEC will forĀmulate and administer the porĀtal management procedures to ensure the integrity of the database, its regular mainteĀnance and real time updates. The Department of Information and Communications and the National Privacy Commission will provide it technical support.
While the system may not asĀsure absolute protection for the investing public, it will surely serve as a first line of defense since prospective investors can easily verify whether a security or plan being transacted is regisĀtered with the SEC or not.