The Philippine Securities and Exchange Commission issued a cease-and-desist order directing EF Easy Franchise Technological Ventures Inc., related entities and individuals to stop offering or selling unregistered securities. The order covers investment contracts, profit-sharing agreements, franchise investment schemes, partnership deals and similar arrangements. The regulator found that the company solicited funds, particularly from overseas Filipino workers, through pooled franchise ownership arrangements promising passive income, profit sharing, high projected returns and hands-off management. It classified the arrangements as investment contracts because returns depended primarily on EF Easy Franchise's management efforts. The offerings were not registered, and the parties involved lacked the required licenses to sell securities. The order also prohibits transactions involving covered funds at depository banks and the transfer or disposal of controlled assets, preserving them for investors.

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