The Securities and Exchange Commission (SEC) may refuse or, after due notice and hearing, suspend or revoke the authority of crowdfunding intermediaries. The Crowdfunding Rules provides that operation with respect to crowdfunding of investment houses, brokers and funding portal may be refused, or any registration granted may be revoked, suspended, or limitations placed thereon, by the SEC. 

The application may be denied or the registration revoked, suspended or limited, when the applicant or registrant:

• 1. Has willfully violated any provision of the Crowdfunding Rules, the Securities Regulation Code (SRC) and its rules, any rule, regulation or order made hereunder, or any other law administered by the SEC, or in the case of a registered broker has failed to supervise, with a view to preventing such violation, another person who commits such violation;

• 2. Has willfully made or caused to be made a materially false or misleading statement in any application for registration or report filed with the SEC or a self-regulatory organization, or has willfully omitted to state any material fact that is required to be stated therein;

• 3. Has failed to satisfy the qualifications or requirements for registration prescribed under Article Two of the Crowdfunding Rules (Crowdfunding Intermediary Requirements), and any related provisions in the SRC and its rules;

• 4. Has been convicted, by a competent judicial or administrative body of an offense involving moral turpitude, fraud, embezzlement, counterfeiting, theft, estafa, misappropriation, forgery, bribery, false oath, or perjury, or of a violation of securities, commodities, banking, real estate or insurance laws;

• 5. Is enjoined or restrained by a competent judicial or administrative body from engaging in securities, commodities, banking, real estate or insurance activities or from willfully violating laws governing such activities;

• 6. Is subject to an order of a competent judicial or administrative body refusing, revoking or suspending any registration, licensed or other permit under the Crowdfunding Rules, the SRC and its rules, and any other law administered by the SEC;

• 7. Is subject to an order of a self-regulatory organization suspending or expelling him from membership or participating therein or from association with a member or participant thereof;

• 8. Has been found by a competent judicial or administrative body to have willfully violated any provisions of securities, commodities, banking, real estate or insurance laws, or has willfully aided, abetted, counseled, commanded, induced or procured such violation; or

• 9. Has been judicially declared insolvent.
  

• Author
• Recent Posts

P&L Law

Pamaos & Labao Law Firm (P&L Law) is a full-service professional legal firm, located in Metro Manila, Philippines | Telephone: (+632) 7799-0589 | Email: info@pnl-law.com | Website: http://pnl-law.com

Latest posts by P&L Law (see all)

• Extension of Filing Periods and Suspension of Hearings for March 29 to April 4, 2021: SC Administrative Circular No. 14-2021 (Full Text) - March 28, 2021
• ECQ Bubble for NCR, Bulacan, Cavite, Laguna and Rizal: Resolution No. 106-A (Full Text) - March 27, 2021
• Guidelines on the Administration of COVID-19 Vaccines in the Workplaces (Labor Advisory No. 3) - March 12, 2021