PHI SEC Crowdfunding Rules
On Jul. 9, PHI SEC approved rules on SME crowdfunding access.
- Issued rules and regulations on crowdfunding, allowing startups and SMEs greater
access to funding while providing the public with some more investment options.
- The Commission En Banc on Jul. 4 approved the Rules and Regulations Governing
Crowdfunding in accordance with Republic Act No. 8799, Securities Regulation Code.
- Salient rules on crowdfunding
- The CF Rules primarily govern the operation and use of equity- and lending-based
crowdfunding by registered persons such as brokers, investment houses, etc.
- Crowdfunding through means other than online electronic platform is not within the
coverage of the CF Rules; hence, the usual requirements under the SRC shall apply.
- Crowdfunding transactions must be done through registered CF intermediaries.
- The aggregate amount of securities that can be offered and sold by issuer within 12
months is P10mn when offered/sold to any investor; P10-50mn for qualified investor.
- The aggregate amount of securities sold to any investor across all issuers in securities
crowdfunding during the 12-month period shall not exceed the following limits.
- For retail investors with annual income of up to P2mn, a maximum value of 5% of
total income per year; and with annual income over P2mn, a maximum value of 10%.
- A CF intermediary must disclose and display prominently on its platform, relevant
information relating to its crowdfunding activities, such as issuer information, fees.
- Must deliver educational materials to investors on process for the offer, purchase and
issuance of CF securities, risks associated; types of securities available for purchase
- Must provide on platform communication channels through which can communicate.
- Other Points
- An investor must be able to cancel an investment commitment for any reason until
48 hours prior to the deadline identified in the issuer’s offering materials.
- If an issuer does not complete an offering, an intermediary must direct the refund.
- Issuers must submit annual reports and progress updates disclosing development.
- Any person or corporation currently engaged in equity-based and/or lending-based
crowdfunding must comply with the CF Rules within three months of effectiveness.
||B/D; Bank; Corp; IA
||Corporate; Equity; Fund Mgt; Securities
Last substantive update on 07/09/2019