Ztock

November 9, 2023 ENFORCEMENT AND INVESTOR PROTECTION DEPARTMENT SEC ADVISORY This is to inform the public that ZTOCK operated and offered by WETRADE TECHNOLOGIES PTE. LTD. is NOT AUTHORIZED TO SOLICIT INVESTMENTS FROM THE PUBLIC. SDAaTC This ADVISORY is prompted by reports and information gathered by the Commission that ZTOCK is enticing the public to invest in securities not registered in the Philippines through its website and through its various social media platforms such as Facebook, LinkedIn, Instagram and Tiktok . ZSTOCK is apparently an "all-in-one investment app for stocks and Exchange-Traded Funds (ETFs) and more," targeting the so-called Gen-Z investors. In its LinkedIn account, ZTOCK represents itself as a "neobroker for the next gen of investors." Investors can invest through ZTOCK by joining their social media group at https://www.facebook.com/groups/913237519935537 or going to its website at https://www.ztock.app/ where you can download the ZSTOCK app through clickable icons or links to Google Play and App Store and then register or create an account therein and thereafter trade over 8,000 US shares and ETFs and others for as low as 1USD (Php56.03) for fractional shares. In this regard, Section 8 of the Securities Regulation Code (SRC) requires that securities shall not be sold or offered for sale or distribution within the Philippines without proper registration with the Commission. Under Rule 3.1.17 of the 2015 SRC Rules, public offering is any offering of securities to the public or anyone whether solicited and unsolicited and any solicitation or presentation of securities for sale through information communications technology or the internet shall be presumed to be a public offering. AaCTcI On the other hand, Rule 26.3.5 of the 2015 SRC Rules defines solicitation as the act of seeking or asking for business or information which includes the act of providing information about a security or investment product being offered for sale with the view of making a person a client or closing or bringing in a sale or purchase of a security or investment product. The solicitor need not be a signatory to any contract relative to such offer or sale of the security. Based on the Commission's database, ZTOCK/WETRADE TECHNOLOGIES PTE. LTD. is NOT REGISTERED as a corporation or partnership and OPERATES WITHOUT THE NECESSARY LICENSE AND/OR AUTHORITY to solicit, offer, accept or take investments/placements from the public or to issue securities defined under Section 3 of the Securities Regulation Code (SRC), nor to act as a securities broker under Section 28 of the SRC, nor to act as a crowdfunding portal or intermediary under the SEC's Rules and Regulations Governing Crowdfunding, nor act as a financial service provider under the Financial Products and Services Consumer Protection Act. In view thereof, the public is hereby advised NOT TO INVEST or to STOP INVESTING in unregistered securities offered by ZTOCK/WETRADE TECHNOLOGIES PTE. LTD. and to exercise caution in dealing with any individuals or group of persons soliciting investments or recruiting investors for and on behalf of ZTOCK/WETRADE TECHNOLOGIES PTE. LTD. Those who act as salesmen, brokers, dealers or agents, representatives, promoters, uplines, recruiters, influencers, endorsers and enablers of ZTOCK/WETRADE TECHNOLOGIES PTE. LTD. in selling or convincing people to invest in unregistered securities being offered by the said entity including soliciting investments or recruiting investors through the internet may be held criminally liable under Section 11 of the Financial Products and Services Consumer Protection Act (FCPA) and Section 28 of the SRC which are both penalized separately with a maximum fine of Five Million Pesos (Php5,000,000.00) or imprisonment of Twenty One (21) years or both pursuant to Section 73 of the SRC (SEC vs. Oudine Santos, G.R. No. 195542, 19 March 2014) . acEHCD Furthermore, the names of all those involved will be reported to the Bureau of Internal Revenue (BIR) so that the appropriate penalties and/or taxes be correspondingly assessed. Should you have any information regarding any investment solicitation by any individual or group of individuals on behalf of ZTOCK/WETRADE TECHNOLOGIES PTE. LTD. please send your report through email at [emailprotected] . For the information and guidance of the public. Makati City, November 9, 2023.