SEC launches ‘hotline’ section vs erring firms

A week after the launch of its online registration system, the Securities and Exchange Commission (SEC) steps up its public accessibility further with the establishment of a "hotline" section aimed against erring corporations.

SEC chairperson Lilia Bautista said the new SEC Hotline will be ready to accept calls and handle inquiries from the public during regular working hours.

To be manned by pesonnel under the Ofice of the General Counsel (OGC), the SEC Hotline will be activated starting today thru the following telephone numbers: 725-34-18 or 725-82-60.

Bautista said the public is encouraged to call in their complaints against companies that have dubious practices such as those suspected of engaging in boiler room, pyramiding and Ponzi schemes.

The SEC is the lead agency in the government’s campaign against boiler room operators who have been using the Philippines as the base for their illegal investment activities.

With foreign nationals on their payroll, boiler room firms – set up mainly in small, cramped offices – establish contacts with foreign clients and lures them into investing in stocks and other other securities, although they are not licensed to do so.

Once money has been collected from the unsuspecting client, the company simply packs up and close shop, but reemerging in just a couple of weeks under a new name and office location.

Aside from reports of these illegal activities, the SEC Hotline can also take in inquiries regarding other aspects of the Corporation Code and the Securities Regulation Code, including stock trading anomalies.

Last April 16, the SEC launched a P40-million online registration system called SEC-iRegister at its website (www.sec.gov.ph) for the registration and name verification of new stock and non-stock corporations. – Conrado Diaz Jr.