THE Securities and Exchange Commission (SEC) has given Investree Philippines, Inc. a permanent license to operate as a funding portal and act as a crowdfunding intermediary after a review of the company’s operations.

“The grant of the permanent license is part of the Commission’s efforts to promote crowdfunding as a suitable investment among Filipino investors and to provide more fund-raising options for SMEs (small and medium enterprises),” the SEC said in a statement.

Investree Philippines is a joint venture of Filinvest Development Corp. and Investree Singapore Pte. Ltd. It was granted a provisional license last year on Jan. 7.

It is said to be the first crowdfunding intermediary and funding portal registered with the commission, following the effectivity of the Rules and Regulations Covering Crowdfunding (CF Rules) in July 2019.

The SEC describes crowdfunding as a “fund-raising activity typically conducted through an online platform for startups and [SMEs].” Crowdfunding would involve the entrepreneur or the project initiator, those who will support and fund the business, and the moderating organization.

Crowdfunding activities that involve lending or are equity-based entail offering securities in the form of debentures or shares. Under the Securities Regulation Code, entities cannot just offer for sale or distribute securities without a registration statement filed and approved by the SEC.

The commission said crowdfunding securities may be exempted from registration “provided that the issuer, intermediary, and investors comply with the CF Rules.”

Investree Philippines’ crowdfunding portal has 43 issuers and one investor with 110 notes issued for a total P172.15 million as of Dec. 20, 2021. It also had three investors, which include Investree Singapore, Andremere Holding Corp., and Netbank (A Rural Bank), Inc. — Keren Concepcion G. Valmonte

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