Central Bank of the Philippines

March 17, 1980 Central Bank of the Philippines Manila Attention : Carlota B . Valenzuela Deputy Governor Supervision and Examination Sector Gentlemen/Mesdames: This is an acknowledgment of the receipt of your letter dated August 29, 1979, requesting information on the forty-four (44) firms which have been subjected to the stop-and-desist orders of the Commission in order to determine who among them is engaged in quasi-banking functions. LexLib In connection therewith, please be informed that the Commission, from its findings, has considered the applicability of Commonwealth Act No. 83, as amended, otherwise known as the Securities Act, to the business opportunities that are being offered to the public by these firms. It further appears to the Commission that these firms are engaged in the offering and sale of "investment contracts" which are "securities" within the purview of the Securities Act, which may be in the form of pre-need contracts employed by marketing outfits, firms engaged in the sale of memorial life plans, professional pension plans and the like, as well as the pyramid-type of selling schemes. The Commission believes that the operations of these plans do not involve quasi-banking functions considering that their activities are only covered by the Securities Act as enforced by this Office. llcd Very truly yours, (SGD.) ROSARIO N. LOPEZ Director Corporate and Legal Department