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The Securities and Exchange Commission (SEC) has issued a cease and desist order (CDO) against Trading Point Holdings Limited, operating under the names XM, XM Global Limited, and XM Philippines, for the unauthorized solicitation of investments from the public.
In an order dated November 7, 2025, the Commission directed the XM Group to immediately halt the unlawful offering and selling of securities without the necessary license.
The order also demands that the company, its officers, promoters, representatives, agents, influencers, and subsidiaries cease their internet presence related to the investment scheme.
Celebrity Endorsers Named
The SEC explicitly identified high-profile endorsers of the platform in its order. Among them are Filipino boxing icon and former senator Emmanuel “Manny” D. Pacquiao, Sr. and forex coach/trader Jonathan Lou Reyes.
The Commission stated that to prevent damage to investors:
- The SEC has prohibited the group from transacting any business involving funds in its depository banks.
- It also barred the transfer, disposal, or conveyance of assets, including real or personal properties and bank deposits, to ensure their preservation for the benefit of investors.
The Scheme and Violations
The issuance of the order follows an investigation by the SEC Enforcement and Investor Protection Department (EIPD), which found the XM Group selling or offering derivatives, foreign exchange shares, and cryptocurrencies.
XM operates under its parent company, Trading Point, offering brokerage services via its website (xm.com) and the XM App.
Locally, it utilized XM Philippines Facebook and YouTube accounts to promote its services.
How it works:
According to the regulator:
- Account Creation: Investors are required to create an account and deposit a minimum amount based on their chosen plan.
- Trading: Users purchase and trade securities on the platform, enticed by the promise of potential returns.
- Referrals: XM offers bonuses and cash rewards through a “Friend Referral Program” to ensure a continuous flow of new investors.
The SEC found that XM made local banks and e-wallets available as payment partners, indicating that “investors in the Philippines are primarily its target market”.
Lack of Licenses: CASP and VASP
The SEC emphasized that the XM Group is not registered as a corporation or partnership in the Philippines. Consequently, it lacks the necessary secondary license to offer securities to the public, violating Sections 8 and 28 of the Securities Regulation Code (SRC).
Furthermore, the platform failed to comply with the country’s specific digital asset regulations:
- SEC CASP Rules: Since 2024, the SEC has required entities offering crypto services to register as a Crypto Asset Service Provider (CASP). This mandates a minimum paid-up capital of PHP 100 million and a physical office in the Philippines.
- BSP VASP License: Entities facilitating crypto exchanges or custody must also register as a Virtual Asset Service Provider (VASP) with the Bangko Sentral ng Pilipinas (BSP).
XM possesses neither of these critical registrations.
Previous Warnings
This is not the first time the regulator has flagged the platform. As early as March 2024, the SEC issued an advisory warning the public against investing in unregistered online investment platforms, explicitly naming XM alongside other unauthorized entities like eToro.
“The issuance of a CDO is therefore warranted for the protection of the investing public, as it operates as a fraud on investors,” the order stated.
This article is published on BitPinas: SEC Issues Cease and Desist Order Against Manny Pacquiao-Endorsed Trading Platform XM
Disclosure: The writer utilized AI to assist in developing the article above.
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