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The Securities and Exchange Commission (SEC) has issued a public advisory against Interactive Brokers Group, Inc. (IBKR), warning the public that the international brokerage firm is not authorized to solicit investments in the Philippines.
In an advisory, the Commission stated that IBKR does not possess the necessary license to operate as a broker, dealer, or exchange in the country, nor is it registered as a corporation under Philippine laws.
Unauthorized Operations
Based on the Commission’s information, Interactive Brokers describes itself as an online trading platform providing access to global financial products, including stocks, options, futures, forex, bonds, funds, and cryptocurrencies.
The SEC noted that IBKR has actively promoted its services to Filipinos through social media and its mobile application, allowing local users to create accounts, deposit funds, and trade derivatives.
The agency emphasized that these activities constitute the offer and sale of securities to the public, which requires specific registration under the Securities Regulation Code (SRC).
“Based on the Commission’s records, INTERACTIVE BROKERS GROUP, INC. is NOT REGISTERED as a corporation… and DOES NOT HAVE THE NECESSARY LICENSE AND/OR AUTHORITY to offer, sell, or distribute securities,” the advisory read.
Regulatory Requirements
While acknowledging that IBKR may be regulated in other jurisdictions, the SEC clarified that foreign entities must still comply with Philippine laws before offering investment products to the local public.
Under the SRC, companies must ensure:
- The securities offered are registered with the SEC.
- The securities are issued by a registered corporation or dealer.
- The entity possesses the appropriate secondary license.
Warning to Influencers
The SEC also issued a stern warning to individuals promoting the platform.
Any person acting as a salesman, agent, promoter, influencer, or endorser of Interactive Brokers in the Philippines could face criminal liability. Under Section 28 of the SRC, violators may be penalized with a fine of up to Five Million Pesos (₱5,000,000.00), imprisonment of up to twenty-one (21) years, or both.
Context: NTC Blocking Order
This advisory provides clarity on recent reports regarding the inaccessibility of the Interactive Brokers website and app for some Filipino users.
Earlier this month, the Bangko Sentral ng Pilipinas (BSP) confirmed that it had requested the National Telecommunications Commission (NTC) to block access to approximately 50 unlicensed trading platforms.
The SEC strongly advises the public to “exercise caution” before dealing with IBKR or similar unregistered online trading platforms.
This article is published on BitPinas: SEC Issues Advisory Against Interactive Brokers (IBKR); Cites Unauthorized Solicitation of Investments
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