Filipino Investors to Gain Access to US Stocks, ETFs After Regulatory Approval

DragonFi Securities Inc. has received regulatory approval from the Securities and Exchange Commission (SEC) to grant qualified Philippine-based investors access to pre-approved U.S. equities and exchange-traded funds (ETFs). The SEC gave DragonFi the go-ahead to test its financial products and services under the regulatory sandbox, granting access to ETFs through an over-the-counter depositary receipt (DR) model. The business model will take into account an investor’s exposure in the local capital market in determining the allowable participation in foreign equities, in a bid to foster a “complementary relationship” between domestic and international investing. “Through the testing, the Commission will evaluate the viability of the proposed offering, including its operational framework, investor protection measures, and potential regulatory implications within a controlled environment,” the SEC said in an emailed statement. “Similarly, the results of the testing may help inform the further enhancement of the SEC’s regulations,” it added. The SEC noted, however, that this will be subject to approved parameters and regulatory oversight throughout the testing period. To recall, DragonFi previously secured the SEC's first accreditation as a Personal Equity and Retirement Account (PERA) administrator. —NB, GMA News