The SEC said that while Phil-Asia is a registered pre-need company, it has no more plans available for sale since 1993; no dealer’s license since 1996; no salesmen’s permit; and no authority to operate a branch.
"The company failed to comply with all the SEC requirements for a pre-need company and, therefore, is not authorized to sell new pre-need plans. Instead, they are only allowed to service existing planholders from Dec. 28, 1993," the SEC said.
The move to stop Phil-Asia’s operations stemmed from information furnished to the SEC by a group of pre-need planholders, former salesmen and former executives of the company, alleging that it continues to sell plans and collect payments without the appropriate licenses or authority.
Phil-Asia, whose principal office is at the Belvedere Tower in Ortigas Center, even posted a public notice in two newspapers last March 15, signed by its president and CEO Vicente Afulugencia, to disclaim rumors that it is no longer in operation and does not have the authority to transact business.
Aside from documents that showed it had sold pre-need plans denominated as "Life Plan Agreements" and received Payments, the company was found to have branch offices in Dasmariñas, Imus, Naic and Trece Martirez, all in Cavite province.
All these, the SEC said, were done without the proper licenses and authority and thus provided the basis for the CDO.
Phil-Asia was the latest in the series of CDOs issued by the SEC this year which has mainly been directed at boiler room operators, website marketing, and multi-level sales companies.