Category Archives: Securities & FinTech

Prescriptive Periods (Civil and Criminal Cases): Securities Regulation Code

The determination of the precriptive period, or the length of time within which an action must be filed before it is permanently barred, is generally easy. The prescriptive period is normally included in the law itself. The determination of the prescriptive period under the Securities Regulation Code (Republic Act No. 8799) is not simple, perhaps consistent with the esoteric nature of its subject matter.  

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Requirements for Crowdfunding Transactions

Crowdfunding transactions, in order to be legally exempt from the general requirements of securities registration, must be only done through a crowdfunding platform. An intermediary controls this platform, which is why the intermediary has a number of duties, including the institution of measures to reduce the risk of fraud, as well as the following:

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Crowdfunding: Completion of Offerings, Cancellations, and Reconfirmations

An issuer who wishes to list its securities in the crowdfunding platform must submit disclosures, including an Offering Statement, which must indicate the target offering amount and the deadline to reach the target offering amount. The target amount must be reached on or before the deadline; otherwise, no securities will be sold in the offering and investment commitments will be cancelled and committed funds will be returned.

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