On Friday, February 13, 2015, the Securities and Exchange Commission (SEC) issued a warning for the public to stay cautious when investing their hard-earned money in high-yield but high-risk investment schemes such as those offered by Emgoldex Philippines‘ “Pinoy Style Patak Patak”.
SEC clarified that under the law, Emgoldex Philippines is not authorized to solicit investments from the public.
Under Section 8.1 of the Securities Regulation Code, companies are required to obtain a permit to solicit investments from the SEC. Before getting the permit, they must also be registered/licensed under SEC. However, SEC does not have a record of Emgoldex Philippines. According to Batangas Today, SEC advised that “Emgoldex Philippines is not a registered corporation or partnership and is not authorized to solicit investments from the public.”
High-Yield but High-Risk Investments
A lot of people have been drawn to companies similar to Emgoldex Philippines who offer high-yield investments that promise to give investors huge profits.
For example, SEC detailed that Emgoldex Philippines supposedly offers large profits anywhere from P5,000 to P10,000 for investments of just P1,000 while placements of P35,000 brings investors as much as P180,000 to P360,000.
These investment schemes were offered by Emgoldex Philippines. Because the company is not authorized and recognized by SEC to solicit investments, the public is warned from investing in their high-yield, high-risk schemes.
The Wikipedia defines “investment” as this:
Investment is time, energy, or matter spent in the hope of future benefits actualized within a specified date or time frame.
Of course, people want to earn something from their investments – whether the “profit” is large or small. This profit can come in monetary form but could also be something else, depending on the type of investment.
Now, investing your money into something involves a certain degree of risks. However, in cases wherein the profits are very high compared with what you initially invested, you might want to question where your investment goes and where your profit comes from.
Investments can give you several times your money back but could also make you lose all your hard-earned cash. For this reason, SEC monitors investment companies to make sure they comply with regulations so as to keep the public safe.