An online trading platform endorsed by boxing legend and former senator Emmanuel D. Pacquiao Sr. has been ordered by the Securities and Exchange Commission to stop soliciting investments in the Philippines for offering unregistered securities without the required license.
In a cease and desist order promulgated on Nov. 7, the SEC directed the XM Group to immediately halt the offering and selling of securities and to stop all online activities related to the investment scheme. The order also covers the company’s officers, promoters, agents, influencers, subsidiaries, and all persons acting on its behalf.
The SEC further prohibited the group from transacting business involving funds in its depository banks and from transferring or disposing of its assets, including bank deposits, to prevent “grave damage and prejudice” to investors and to ensure asset preservation.
Among those who endorsed the platform were boxing icon and former senator Emmanuel D. Pacquiao Sr. and forex coach and trader Jonathan Lou Reyes.
The order stemmed from an investigation by the SEC Enforcement and Investor Protection Department, which found that the XM Group was offering derivatives, foreign exchange shares, cryptocurrencies, and other securities without registration.
XM operates under its parent company Trading Point, an international financial services firm offering brokerage products through its website and mobile application. In the Philippines, the company promoted its services through XM Philippines social media accounts and facilitated transactions using local banks and e-wallets.
Under its scheme, investors were required to open accounts and deposit funds based on selected plans before trading securities on XM platforms, which highlighted potential returns. The company also offered bonuses and cash rewards through a Friend Referral Program to attract more investors.
The SEC said XM is not registered as a corporation or partnership in the Philippines and does not hold a secondary license to sell securities. “The fact that XM has tapped and made available the local banks and e-wallets as its payment partners clearly shows that investors in the Philippines are primarily its target market,” the order read.
“Considering that XM was shown, by substantial evidence, to be offering/selling unregistered securities in the Philippines without the requisite license in violation of Sections 8 and 28 of the SRC, the issuance of a CDO is therefore warranted for the protection of the investing public, as it operates as a fraud on investors,” it added.
The SEC earlier issued an advisory in March 2024 warning the public against investing in unregistered online investment platforms, including XM.
