SEC orders closure of Phil-Asia Care Plans

The Securities and Exchange Commission has ordered the immediate closure of all offices of Phil-Asia Care Plans Inc. to further safeguard the interests of the investing public.

The directive was contained in an order signed by the Commission en banc on Sept. 3, making the cease-and-desist order earlier issued against Phil-Asia permanent.

The CDO was issued by the SEC on the basis of findings that Phil-Asia has been selling pre-need plans to the public without the necessary license.

According to the SEC’s Compliance and Enforcement Department, Phil-Asia continued selling pre-need plans and collecting amortizations from planholders despite the issuance of the CDO.

"A careful perusal of the evidence presented shows that Phil-Asia continuously and flagrantly violated the CDO issued by the Commission. Its failure to file a motion to lift as well as its continued defiance of the CDO show Phil-Asia’s hard stance in ignoring and challenging the authority of the Commission. It is therefore imperative and warranted that the CDO be made permanent," the Commission en banc said.

The Commission said the order is without prejudice to the filing of contempt charges against Phil-Asia or its responsible officers, and enforcing the appropriate penalty and administrative sanctions pursuant to Sections 53.4 and 54 of the Securities Regulation Code.

Phil-Asia was directed to explain within 15 days from receipt of the order why its certificate of registration should not be revoked for violation of the CDO.

SEC said Phil-Asia has no pre-need plan available for sale since 1993. It has had no dealers licensed since 1996 and no authority to operate a branch.

Since the company failed to comply with SEC requirements, Phil-Asia has been prohibited from selling new pre-need plans. It was only authorized to service existing planholders from Dec. 23, 1993.