SG Americas Securities LLC Has $120000 Holdings in Resources Connection, Inc. (NASDAQ …

Acadian Asset Management LLC grew its position in Resources Connection by 6.2% during the 3rd quarter. Acadian Asset Management LLC now …

Resources Connection logoSG Americas Securities LLC reduced its holdings in shares of Resources Connection, Inc. (NASDAQ:RECN) by 37.9% during the 3rd quarter, according to its most recent 13F filing with the SEC. The fund owned 7,247 shares of the business services provider’s stock after selling 4,419 shares during the period. SG Americas Securities LLC’s holdings in Resources Connection were worth $120,000 as of its most recent filing with the SEC.

A number of other institutional investors have also modified their holdings of the business. Northern Trust Corp grew its position in Resources Connection by 0.8% during the 2nd quarter. Northern Trust Corp now owns 392,222 shares of the business services provider’s stock worth $6,629,000 after purchasing an additional 3,104 shares during the last quarter. Acadian Asset Management LLC grew its position in Resources Connection by 6.2% during the 3rd quarter. Acadian Asset Management LLC now owns 59,241 shares of the business services provider’s stock worth $983,000 after purchasing an additional 3,473 shares during the last quarter. Wells Fargo & Company MN grew its position in Resources Connection by 7.8% during the 3rd quarter. Wells Fargo & Company MN now owns 48,292 shares of the business services provider’s stock worth $802,000 after purchasing an additional 3,504 shares during the last quarter. Legal & General Group Plc grew its position in Resources Connection by 6.9% during the 2nd quarter. Legal & General Group Plc now owns 58,626 shares of the business services provider’s stock worth $999,000 after purchasing an additional 3,765 shares during the last quarter. Finally, Raymond James & Associates grew its position in Resources Connection by 6.3% during the 2nd quarter. Raymond James & Associates now owns 79,358 shares of the business services provider’s stock worth $1,341,000 after purchasing an additional 4,710 shares during the last quarter. 80.43% of the stock is currently owned by institutional investors.

In other news, Director Anthony Cherbak sold 31,750 shares of the stock in a transaction that occurred on Friday, January 4th. The shares were sold at an average price of $15.79, for a total value of $501,332.50. Following the completion of the sale, the director now directly owns 52,429 shares of the company’s stock, valued at $827,853.91. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 9.80% of the stock is currently owned by corporate insiders.

Several research analysts have issued reports on the stock. Zacks Investment Research raised shares of Resources Connection from a “hold” rating to a “buy” rating and set a $21.00 price objective on the stock in a research report on Wednesday, October 10th. Robert W. Baird lowered their target price on shares of Resources Connection from $19.00 to $16.00 and set a “neutral” rating on the stock in a report on Friday, January 4th. ValuEngine downgraded shares of Resources Connection from a “buy” rating to a “hold” rating in a report on Wednesday, October 3rd. Finally, BidaskClub downgraded shares of Resources Connection from a “strong-buy” rating to a “buy” rating in a report on Friday, December 7th. Two investment analysts have rated the stock with a hold rating, one has given a buy rating and one has given a strong buy rating to the stock. The company presently has an average rating of “Buy” and a consensus price target of $17.00.

Resources Connection stock traded down $0.09 during trading on Monday, reaching $16.44. The company had a trading volume of 174,644 shares, compared to its average volume of 196,417. The company has a debt-to-equity ratio of 0.21, a quick ratio of 2.28 and a current ratio of 2.28. Resources Connection, Inc. has a 12-month low of $12.72 and a 12-month high of $19.50. The company has a market cap of $521.55 million, a price-to-earnings ratio of 16.78 and a beta of 1.10.

Resources Connection (NASDAQ:RECN) last posted its earnings results on Thursday, January 3rd. The business services provider reported $0.33 EPS for the quarter, topping analysts’ consensus estimates of $0.23 by $0.10. The business had revenue of $188.80 million for the quarter, compared to analysts’ expectations of $185.05 million. Resources Connection had a net margin of 3.44% and a return on equity of 11.77%. Sell-side analysts predict that Resources Connection, Inc. will post 1 EPS for the current year.

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, March 13th. Shareholders of record on Wednesday, February 13th will be issued a $0.13 dividend. This represents a $0.52 dividend on an annualized basis and a yield of 3.16%. The ex-dividend date is Tuesday, February 12th. Resources Connection’s payout ratio is 53.06%.

COPYRIGHT VIOLATION WARNING: “SG Americas Securities LLC Has $120,000 Holdings in Resources Connection, Inc. (NASDAQ:RECN)” was first posted by Fairfield Current and is the property of of Fairfield Current. If you are accessing this piece of content on another domain, it was stolen and reposted in violation of United States and international trademark & copyright law. The legal version of this piece of content can be read at https://www.fairfieldcurrent.com/news/2019/01/21/sg-americas-securities-llc-has-120000-position-in-resources-connection-inc-recn.html.

Resources Connection Profile

Resources Connection, Inc provides business consulting services under the Resources Global Professionals name in North America, Europe, and the Asia Pacific. The company offers process transformation and optimization, financial reporting and analysis, technical and operational accounting, and merger and acquisition due diligence and integration services; new accounting standards implementation and remediation support services; and audit readiness, and preparation and response services.

See Also: What is an investor looking for in an SEC filing?

Institutional Ownership by Quarter for Resources Connection (NASDAQ:RECN)

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Man Group plc Has $6.55 Million Holdings in Dover Corp (DOV)

Man Group plc grew its position in Dover Corp (NYSE:DOV) by 64.4% in the 3rd quarter, according to the company in its most recent 13F filing with the …

Dover logoMan Group plc grew its position in Dover Corp (NYSE:DOV) by 64.4% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 73,924 shares of the industrial products company’s stock after buying an additional 28,954 shares during the period. Man Group plc owned 0.05% of Dover worth $6,545,000 as of its most recent SEC filing.

Several other institutional investors have also recently bought and sold shares of DOV. JPMorgan Chase & Co. lifted its holdings in Dover by 3.4% during the 3rd quarter. JPMorgan Chase & Co. now owns 8,827,415 shares of the industrial products company’s stock worth $781,489,000 after buying an additional 288,630 shares in the last quarter. Bank of America Corp DE raised its holdings in shares of Dover by 15.9% in the 2nd quarter. Bank of America Corp DE now owns 5,304,419 shares of the industrial products company’s stock valued at $388,283,000 after purchasing an additional 726,930 shares in the last quarter. Bank of New York Mellon Corp raised its holdings in shares of Dover by 5.7% in the 3rd quarter. Bank of New York Mellon Corp now owns 2,380,997 shares of the industrial products company’s stock valued at $210,788,000 after purchasing an additional 129,276 shares in the last quarter. Northern Trust Corp raised its holdings in shares of Dover by 15.2% in the 2nd quarter. Northern Trust Corp now owns 2,323,795 shares of the industrial products company’s stock valued at $170,101,000 after purchasing an additional 306,116 shares in the last quarter. Finally, Alliancebernstein L.P. raised its holdings in shares of Dover by 13.2% in the 3rd quarter. Alliancebernstein L.P. now owns 2,036,751 shares of the industrial products company’s stock valued at $180,314,000 after purchasing an additional 238,123 shares in the last quarter. 90.71% of the stock is owned by institutional investors and hedge funds.

DOV has been the topic of several research reports. Bank of America raised their price objective on shares of Dover from $95.00 to $105.00 and gave the stock a “buy” rating in a research report on Wednesday, September 26th. Oppenheimer reissued a “hold” rating on shares of Dover in a research report on Monday, October 22nd. UBS Group raised shares of Dover from a “neutral” rating to a “buy” rating and set a $76.35 price objective on the stock in a research report on Thursday, January 10th. Gordon Haskett initiated coverage on shares of Dover in a research report on Friday, October 12th. They set a “buy” rating on the stock. Finally, Barclays raised their price objective on shares of Dover from $96.00 to $97.00 and gave the stock an “overweight” rating in a research report on Friday, October 19th. Twelve investment analysts have rated the stock with a hold rating and six have given a buy rating to the company. Dover presently has an average rating of “Hold” and a consensus price target of $89.18.

Shares of Dover stock traded up $1.63 during trading on Monday, hitting $80.69. 1,011,167 shares of the stock were exchanged, compared to its average volume of 1,058,062. The company has a debt-to-equity ratio of 1.09, a quick ratio of 0.88 and a current ratio of 1.30. Dover Corp has a 12 month low of $65.83 and a 12 month high of $90.26. The firm has a market capitalization of $11.81 billion, a P/E ratio of 20.02, a P/E/G ratio of 1.19 and a beta of 1.39.

Dover (NYSE:DOV) last announced its quarterly earnings results on Thursday, October 18th. The industrial products company reported $1.36 EPS for the quarter, beating the consensus estimate of $1.29 by $0.07. Dover had a return on equity of 21.22% and a net margin of 9.69%. The company had revenue of $1.75 billion for the quarter, compared to the consensus estimate of $1.76 billion. During the same quarter last year, the company posted $1.14 earnings per share. The company’s revenue for the quarter was up .0% compared to the same quarter last year. As a group, sell-side analysts forecast that Dover Corp will post 4.84 earnings per share for the current year.

In related news, Director Mary A. Winston sold 2,000 shares of Dover stock in a transaction dated Tuesday, October 23rd. The stock was sold at an average price of $82.29, for a total value of $164,580.00. Following the completion of the sale, the director now directly owns 13,055 shares in the company, valued at $1,074,295.95. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Company insiders own 2.60% of the company’s stock.

COPYRIGHT VIOLATION WARNING: This article was posted by Fairfield Current and is the property of of Fairfield Current. If you are reading this article on another domain, it was stolen and republished in violation of U.S. & international copyright and trademark laws. The original version of this article can be accessed at https://www.fairfieldcurrent.com/news/2019/01/21/dover-corp-dov-shares-bought-by-man-group-plc.html.

About Dover

Dover Corporation provides equipment and components, specialty systems, consumable supplies, software and digital solutions, and support services worldwide. The company operates in three segments: Engineered Systems, Fluids, and Refrigeration & Food Equipment. The Engineered Systems segment offers precision marking and coding, digital textile printing, soldering and dispensing equipment, and related consumables and services; and automation components, including manual clamps, power clamps, rotary and linear mechanical indexers, conveyors, pick and place units, glove ports, and manipulators, as well as end-of-arm robotic grippers, slides, and end effectors for fast-moving consumer goods, digital textile printing, vehicle service, environmental solutions, and industrials end markets.

See Also: How To Calculate Debt-to-Equity Ratio

Institutional Ownership by Quarter for Dover (NYSE:DOV)

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Davos, Technology and Banking

What was on top of the agenda at Davos this year? Concern over emerging technologies. Granted, the focus was more on the relationship between …

What was on top of the agenda at Davos this year? Concern over emerging technologies. Granted, the focus was more on the relationship between the United States and China, but it shows the link that the economy, geo-political risk, and financial institutions have when it comes to technology concerns. The link is not new. As reported by Banking Exchange, some analysts have speculated that the next financial crisis will likely come at the hands of a cyber attack as opposed to a traditional market downturn.

Worry is growing over how emerging technologies will disrupt financial institutions and thus the countries involved. In the midst of the technology concerns, two countries’ leaders were conspicuously absent from DAVOS: the United States and the United Kingdom. The UK’s Brexit problems go beyond technology, but do present specific issues surrounding their position on the world stage.

The United States has an even bigger headache in negotiations with a world economic power in China that continues to wage a global cyber war. Just as the U.S. and China showed positive signs on a trade deal, U.S. investigators were putting pressure on Chinese Technology company Huawei Technologies, accusing it of stealing intellectual property. While it is likely China and the United States will reach a major agreement on trade sometime in the next couple of months, President Trump will also have to reckon with other branches of the United States government putting pressure on China’s tech firms. The good news is that China needs the United States, in the end. Their economy only grew by 6.6%, which means they need the U.S. as a trading partner.

What this Means for the Banking Industry

For the banking industry, this means that cyber security goes beyond simply compliance and avoiding fraud from sophisticated individual hackers, which is obviously extremely important. Your bank is not just a target for the competitors in terms of market share, but also for other countries that would like to disrupt the American economy.

With that in mind, the banking industry can rightfully demand some federal aid to stop cyber-terror and demand legislation that defends the American banking industry. It also means small and midsize banks need to make their presence known in Washington DC, as cyber attacks from abroad can come just as easily to smaller banks and they need a voice perhaps even more than the bigger ones.

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Fineqia’s Announces Value of Shareholding in NASDAQ-listed Phunware

“Phunware’s business model and millions of active users lends itself well toward blockchain applications and a cryptographic virtual currency,” said …

LONDON, Jan. 21, 2019 /PRNewswire/ – Fineqia International Inc. (the “Company” or “Fineqia”) (CSE: FNQ) (OTC: FNQQF) (Frankfurt: FNQA) announces the value of its equity holding in Phunware Inc. (“Phunware”), a fully integrated enterprise cloud platform for mobile that provides products, solutions, data and services for brands worldwide.

With Phunware’s share price at US$149(C$198) at the time of the close of the NASDAQ stock market on Friday Jan. 18, Fineqia’s shares in Phunware are valued at US$2,424,975(C$3,216,185). The Company’s also holds warrant to buy an equivalent number of shares, giving Fineqia a combined shares and warrants value of US$4,849,950 (C$6,432,390).

“Fineqia’s investment in Phunware has paid off,” said Fineqia’s Chairman Martin Graham. “With our current shareholding, warrant and token rights, it has proved to be a great move for Fineqia.”

Headquartered in Austin, Texas, Phunware Inc. is the pioneer of Multiscreen-as-a-Service (MaaS), a fully integrated enterprise cloud platform for mobile that provides companies the products, solutions, data and services necessary to engage, manage and monetize their mobile application portfolios and audiences globally at scale. Phunware helps the world’s most respected brands create category-defining mobile experiences, with more than one billion active devices touching its platform each month.

Phunware was established in February 2009 and has raised about $100 million from investors such as Wavemaker Partners (Draper Network Fund), Fraser McCombs Ventures, Maxima Ventures, Samsung, Cisco Investments, World Wrestling Entertainment, PLDT Capital, Central Texas Angel Network (CTAN), Baylor Angel Network (BAN) and others.

Phunware’s platform powers more than 6 billion daily transactions and generates more than 5 terabytes of data per day. It counts 13 patents and six others pending in its intellectual property portfolio.

“Phunware’s business model and millions of active users lends itself well toward blockchain applications and a cryptographic virtual currency,” said Fineqia’s CEO Bundeep Singh Rangar. “Unlike most other companies with plans for crypto tokens, Phunware generates millions of dollars in annual revenue, putting it in an entirely different league. That’s what attracted us to invest last year and might explain the incredible investment interest that’s currently there in Phunware’s stock.”

Fineqia’s shareholding in Phunware is held via its subsidiary, Fineqia Investments Ltd. It is in line with the Fineqia’s strategy to invest in blockchain related companies that support its business model. While its shares are subject to an obligatory lock up period, shares obtained by exercising its warrants are free trading.

Fineqia purchased preferred shares last year that are convertible to common shares and received an equivalent number of warrants as well as rights to receive tokens in any future crypto currency offering.

The currency exchange rate applied for US$ to C$ is 1:1.32628.

About Fineqia International Inc.

Fineqia International Inc. is a listed entity in Canada (CSE: FNQ), US (OTC: FNQQF) and Europe (Frankfurt: FNQA). Fineqia International outlines the Company’s corporate governance, culture, processes and relations by which the Company and its subsidiaries and investments are controlled, directed and governed. Fineqia International oversees and ensures the overall success, planning and growth of the Company and all of its subsidiaries. For more information visit https://investors.fineqia.com/news

About Fineqia Investments Ltd

Fineqia Investments Ltd is a wholly-owned subsidiary of Fineqia International set up to hold the Company’s growing portfolio of blockchain, fintech and cryptocurrency technology companies worldwide.

About Phunware, Inc.

Phunware Inc. is the pioneer of Multiscreen-as-a-Service (MaaS), a fully integrated enterprise cloud platform for mobile that provides companies the products, solutions, data and services necessary to engage, manage and monetize their mobile application portfolios and audiences globally at scale. Phunware’s Software Development Kits (SDKs) include location-based services, mobile engagement, content management, messaging, advertising, loyalty and rewards (PhunCoin), and analytics as well as a mobile application framework of pre-integrated iOS and Android software modules for building in-house or channel-based mobile application solutions and vertical solutions. Phunware helps the world’s most respected brands create category-defining mobile experiences, with more than one billion active devices touching its platform each month. For more information about how Phunware is transforming the way consumers and brands interact with mobile in the virtual and physical worlds, visit www.phunware.com, www.phuncoin.com and follow @phunware on all social media platforms.

FORWARD-LOOKING STATEMENTS

Some statements in this release may contain forward-looking information (as defined under applicable Canadian securities laws) (“forward-looking statements”). All statements, other than of historical fact, that address activities, events or developments that Fineqia (the “Company”) believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding potential acquisitions and financings) are forward-looking statements. Forward-looking statements are generally identifiable by use of the words “may”, “will”, “should”, “continue”, “expect”, “anticipate”, “estimate”, “believe”, “intend”, “plan” or “project” or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company’s ability to control or predict, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, without limitation, the failure to obtain sufficient financing, and other risks disclosed in the Company’s public disclosure record on file with the relevant securities regulatory authorities. Any forward-looking statement speaks only as of the date on which it is made except as may be required by applicable securities laws. The Company disclaims any intent or obligation to update any forward-looking statement except to the extent required by applicable securities laws.

SOURCE Fineqia International Inc.

Related Links

www.fineqia.com

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Fund-raising through Initial Coin Offering

As interest in virtual currencies (VCs), blockchain technology, and initial coin offerings (ICOs) continue to heat up, governments around the world are …
Cristina D. Panlilio-Ong

Let’s Talk Tax

By Tata Panlilio-Ong

As interest in virtual currencies (VCs), blockchain technology, and initial coin offerings (ICOs) continue to heat up, governments around the world are evaluating the benefits and potential risks of these innovations while considering the regulatory issues surrounding them.

Recognizing that VCs have the potential to revolutionize the delivery of financial services while, at the same time, pose consumer protection and financial stability risks, as well as money laundering and terrorist financing risks, the Bangko Sentral ng Pilipinas (BSP) issued in 2017 a Circular providing guidelines to regulate VCs when used for the delivery of financial services. The BSP Circular focused on VCs as a means for making payments/remittances and required a VC exchange to obtain a Certificate of Registration to operate as a remittance and transfer company.

Following the lead of the BSP, the Securities and Exchange Commission (SEC) issued on Dec. 27, 2018, the proposed Rules and Regulations Governing ICOs (the “Proposed SEC Rules on ICO”), and invited banks, investment houses, the investing public, and other interest parties to submit their comments.

In broad terms, VC refers to a financial value recorded by electronic means, which may be used to pay for goods or services and which may be exchanged reciprocally. A coin is a unit of value employed as a means of exchange within the blockchain. For the Proposed SEC Rules, VC or coin does not include legal tender and electronic money. Also not included are grants of value as part of a rewards program, which cannot be exchanged for legal tender, bank credit, or any digital/crypto asset. Likewise, not included are digital representations of value used within an online game platform.

Under the Proposed SEC Rules, ICOs or token sales are “distributed ledger technology fund-raising operations involving the issuance of tokens in return for cash, other cryptocurrencies or other assets for the purpose of raising money or capital from the general public” to fund a venture, project, or other investment schemes. Once the project reaches a certain stage, “benefits to token holders may include: a) gains through profits or increase in the value of tokens which can be sold if the project is successful; b) voting or governance rights; or c) usage rights.”

The Proposed SEC Rules primarily govern the “conduct of ICOs wherein convertible security tokens are issued by start-ups and/or registered corporations organized in the Philippines, and non-resident foreign start-ups or corporations doing ICOs targeting Filipinos, through online platforms.” While VC or coin are broad terms, the Proposed SEC Rules apply specifically to convertible security tokens. Convertible meaning it is a VC that has an equivalent value in real currency and can be exchanged back and forth for real currency. Security tokens satisfy the definition of securities under the Securities Regulation Code (SRC) and related SEC rules. Security tokens can be in the form of payment tokens (used for the payment of goods and services or as a means of money/value transfer), utility tokens (grants the bearer access to a decentralized platform or service), and/or asset tokens (represent assets or rights thereto, such as a debt or equity claim on the issuer).

In terms of corporate structure, those that wish to conduct an ICO involving security tokens are required to register as a corporation. For non-resident foreign start-ups or corporations, their ability to register security tokens targeting Filipinos is subject to reciprocity and depends on the existence of information sharing arrangements. If the security tokens are already registered in another jurisdiction, the issuer can submit proof thereof and the regulatory framework applicable to it. In the absence of these requirements, the foreign issuer must establish a branch office in the Philippines.

Those who propose to conduct an ICO are required to comply with the following procedures:

1. Not later than 90 days before the pre-sale (i.e., token sale before the main crowd sale), submit to the SEC an initial request assessment with the required attachments for the SEC to determine if the token is security.

More important attachments include the detailed description of the ICO project; proposed whitepaper; and the legal opinion whether the tokens are securities. The description of the ICO project contains the business plan and feasibility of the proposed project. The important contents of the whitepaper include the hard cap (maximum amount of capital that the project aims to raise) and soft cap (minimum amount needed for the project to proceed); use of the proceeds; detailed description of the ICO tokens, such as price/value and the blockchain technology to be used; returns, rights, and other privileges of the tokens; description of the currency or other assets that will be received as payment for the tokens; and description of the investment risks.

2. Within 20 days from the receipt of the initial assessment request (extendible to another 20 days), the SEC determine if the tokens qualify as securities.

3. If the tokens are considered securities, the issuer must register the ICO not later than 45 days before the pre-sale period. For this purpose, the issuer must submit to the SEC a Registration Statement, including a Prospectus.

In addition to the information in the ICO project description and whitepaper, the Registration Statement includes: a) code audit report on the testing of the source code, Know Your Customer (KYC)/Anti-Money Laundering Act (AMLA) framework, and technology risk and security protocols; b) audited financial statements (AFS) with supplementary schedules dated within 135 days from the filing of the prospectus; and c) Manual on Corporate Governance.

More importantly, the issuer is required to contract an independent and reputable escrow agent for keeping the proceeds of the ICO, unless the issuer can prove to the SEC that other mechanisms will be used to satisfy the role of the escrow agent. A copy of the escrow agreement on the conditions and schedule of the release of the proceeds must also be submitted as part of the Registration Statement documents.

4. Upon submitting the complete Registration Statement, the SEC shall conduct an ocular inspection of the office of the issuer and operating system walkthrough of the ICO.

5. After the order of registration and permit to sell is issued, the issuer shall submit within 105 days after each fiscal year (starting from the year of issuance of the permit to sell) reportorial requirements, such as AFS, interim quarterly FS, and semi-annual report on the status of ICO project. The escrow agent is also required to submit a progress report.

While the BSP focused on VC as a means for delivering financial services and making payments/remittances, the SEC is taking a broader view by treating ICOs as an innovative way of raising funds using blockchain and cryptocurrency technology. Essentially, it can be gleaned from the Proposed Rules that the SEC is strongly inclined to consider ICOs as securities and to regulate them as such by requiring Issuers to secure a prior permit to sell and submit voluminous information designed to protect the investing public.

In addition to the United States and the United Kingdom, Singapore and Hong Kong have, in recent years, become hubs for ICOs, according to reports by Fintech News and Consultancy Asia. In a 2017 advisory, the Monetary Authority of Singapore (MAS) clarified that, while it does not regulate virtual currencies, it recognized that a digital token may fall within the definition of “security” under the Singapore Securities and Futures Act (SFA). In this case, issuers would be required to register a prospectus and secure a license before offering such tokens. Moreover, any platform doing secondary trading would have to be a MAS-approved exchange or market operator.

According to MAS, “if the use of a digital token relates to ownership of or interest over an issuer’s assets or property, it could be considered an offer of units in a collective investment scheme; or if the digital token represents a debt owed by an issuer, it may be considered a debenture. In either case, the token would be deemed “securities” under the SFA.

While MAS adopted a similar treatment, it took a more measured and flexible approach by issuing advisories to guide issuers and the investing public alike, instead of passing binding legislation that definitively characterized digital tokens solely as securities.

The Philippine SEC decidedly took a more conservative approach in deeming ICOs as securities and regulating them in a manner similar to initial public offerings (IPOs), even requiring the appointment of an escrow agent to safeguard ICO proceeds. However, there are notable differences between an IPO and an ICO. An ICO specifically caters to start-up projects, while an IPO proponent has to have a minimum track record. An IPO proponent relies on banks, underwriters, and financial advisors. An ICO issuer targets the investor directly and uses blockchain technology precisely to speed up transactions and bypass the usual procedures of banks or investment houses. Funds raised through an ICO are generally used for specific projects, while the proceeds of an IPO are used for the company’s long-term development.

The Philippine SEC clearly recognizes the potential of ICOs as a means to raise capital for start-ups and other small businesses, as well as increasing public participation in capital markets. It is hoped that they continue to monitor future developments in ICOs and be nimble and flexible enough to support innovations in this field by adjusting existing rules and regulations.

With the BSP and SEC at the forefront of formulating rules governing VCs and ICOs, the Bureau of Internal Revenue has demonstrated in recent issuances governing online retailing and ride-sharing services that it, too, can take the cue from other regulators in crafting rules that would address the tax implications of emerging transactions.

Tata Panlilio-Ong is a Director of the Tax Advisory and Compliance Division of P&A Grant Thornton. P&A Grant Thornton is one of the leading audit, tax, advisory, and outsourcing services firms in the Philippines.

Tata.Panlilio@ph.gt.com

+63(2) 988-2288.

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