MANILA – The Securities and Exchange Commission (SEC) has issued a cease-and-desist order against the XM Group, a foreign financial services firm endorsed by boxing legend and former senator Manny Pacquiao, for illegally soliciting investments in the Philippines without proper registration or licensing. The directive, dated November 7, 2025, mandates Trading Point Holdings Ltd. (operating as XM, XM Global Ltd., and XM Philippines) to immediately stop offering securities, including derivatives, forex, shares, and cryptocurrencies, and to remove all related online content.
The SEC’s Enforcement and Investor Protection Department found that XM aggressively targeted Filipino investors through its website, mobile app, and social media channels (XM Philippines Facebook and YouTube), promoting accounts with minimum deposits and promising returns via trading plans. Users were encouraged to fund accounts through local banks and e-wallets, a clear sign of intent to tap the Philippine market. “The fact that XM has tapped and made available local banks and e-wallets as its payment partners clearly shows that investors in the Philippines are primarily its target market,” the order stated.
Prominent endorsers named in the probe include Emmanuel “Manny” Pacquiao Sr. and forex coach Jonathan Lou Reyes, who appeared in promotional videos urging the public to invest. The SEC emphasized that XM entities are not registered as corporations or partnerships in the Philippines, barring them from obtaining a secondary license to sell securities under the Securities Regulation Code (SRC).
Key Violations and Actions
- Unregistered Securities: Offering investment contracts without SEC approval.
- No Broker/Dealer License: Engaging in buying/selling securities illegally.
- Online Promotion Freeze: All officers, agents, influencers, and affiliates must delete related content.
- Asset Restrictions: Prohibited from transferring or disposing of assets to protect potential victims.
The order warns of criminal prosecution for non-compliance, with penalties including fines and imprisonment.
Broader Context: Rising Vigilance Against Unlicensed Schemes
This crackdown aligns with the SEC’s intensified campaign against unauthorized investment platforms, especially those using celebrity endorsements to lure victims. Pacquiao, a national icon, has faced scrutiny over past associations with dubious ventures, though he has not commented on this case. The regulator urged the public to verify entities via its website and report suspicious schemes.
For investors, the message is clear: High returns often signal high risks—always check SEC registration first.
