The Securities and Exchange Commission (SEC) has issued a cease-and-desist order against Trading Point Holdings Inc., operator of XM Group/XM.com, for offering securities in the Philippines without the required licenses.
The regulator said XM targeted Filipino investors by allowing payments through local banks and e-wallets and by using endorsers Manny Pacquiao and Jonathan Lou Reyes in promotional videos encouraging the public to invest.
According to the SEC, the company has been selling unregistered securities—including derivatives—through its XM.com platform, violating the Securities Regulation Code. Trading Point must stop all securities-related activities in the country until it files for and secures proper registration and permits.
The SEC stressed that regulating securities offerings and those who market them is necessary to protect the investing public.
