The Securities and Exchange Commission (SEC) has approved a test of services that will allow local retail investors to invest in overseas stocks.
Approved were the applications of G-Xchange Inc.’s “GCash Global,” and Indonesia’s Macodimarc Technology Corp.’s “Pluang PH” under the SEC Strategic Sandbox (StratBox).
This will allow companies to test the products or services live but under a controlled setting. The goal is to offer the products to the public at large.
The SEC formally issued the notice of approval on Monday.
Pluang PH is a mobile app that will allow retail investors to trade and invest in US securities pre-selected by the applicant and pre-approved by the SEC.
The test run will go for six months, involving a controlled group of up to 1,000 qualified buyers and retail users.
“These securities are listed on the New York Stock Exchange and/or National Association of Securities Dealers Automated Quotations,” the SEC said.
On the other hand, G-Xchange is a unit of Globe Fintech Innovations Inc., which provides simplified and unified access to global stock markets within its app GStocks Global.
GStocks’ sandbox will run for 24 months and can accommodate up to 2 million participants.
Winsley Bangit, GCash new business group head, in a statement said the approval of the strategic sandbox for GCash Global is a significant step to democratize investing “by bringing global investing to a platform millions of Filipinos already trust and use everyday to manage their daily finances.”
“And by lowering entry barriers, we’re empowering more Filipinos to invest with confidence, starting with amounts they’re comfortable with investing,” he said.
“With GStocks Global partnering with EasyEquities, users will be able to complement their local investments, all right within the app,” Bangit added.
GCash Global and Pluang PH are required to provide the SEC with regular updates, detailing the progress of their operations, testing outcomes, and issues encountered.
“The participants are also required to secure the Commission’s approval before changing the testing plan, ensuring oversight and investors’ protection from potential risks,” the SEC said.
“The sandbox could result in three outcomes: successful completion, early termination by the SEC, or voluntary withdrawal by the participant,” it said.
“If successful, the SEC may approve the product for offering to the general public,” it added.
