SEC halts XM operations, notes endorsement by Manny Pacquiao

The Securities and Exchange Commission has ordered brokerage firm XM to immediately stop offering investment products in the Philippines, citing serious violations of securities laws. The directive covers Trading Point Holdings Ltd. and its related entities operating as XM, XM Global Ltd., and XM Philippines.

One detail that stood out in the SEC’s order was the involvement of Manny Pacquiao. The Commission confirmed that the boxing legend and former senator was among the public figures who endorsed XM. Regulators warned that the use of popular personalities can give the impression that an investment platform is legitimate, even when it is not properly licensed.

Following an investigation, the SEC found that XM had been promoting products such as forex trading, derivatives, and cryptocurrencies without authority. These offerings were marketed through its website and mobile app, while local promotions were carried out via Philippine based Facebook and YouTube pages. Interested users were encouraged to sign up, deposit a minimum amount, and start trading, often with promises of attractive returns and referral bonuses.

Because of these findings, the SEC issued a cease and desist order requiring XM and everyone connected to its operations, including officers, agents, promoters, and influencers, to stop all related activities. The company was also ordered to take down its online presence connected to the investment scheme.

To further protect the public, the SEC barred XM from accessing funds in local banks and from transferring or disposing of any assets. This step aims to prevent further losses and preserve funds that may benefit affected investors.

The Commission stressed that XM is not registered as a corporation or partnership in the Philippines. Without this registration, it cannot secure the license required to legally offer securities. Philippine law clearly requires both securities registration and broker licensing before any investment products can be sold to the public.

The SEC also pointed out that XM’s use of local banks and e-wallets shows that Filipinos were a primary target market. Since the products offered were unregistered, regulators concluded that the activity posed a serious risk to investors.

Earlier warnings about XM were already issued in 2024, but the latest order sends a stronger message. Investors are reminded to be cautious, especially when platforms rely on celebrity endorsements, and to always verify a company’s registration before investing.