The Philippine Securities and Exchange Commission (SEC) issued a cease and desist order against Novaluxia and Novaluxia Innovation Corp. for soliciting public investments through unregistered investment contracts. The order requires the company and those acting on its behalf to stop offering the scheme and related online activities until they obtain the required securities registration and licenses. It also prohibits business involving funds held at depository banks and the transfer or disposal of assets under the company’s control to preserve them for investors. Novaluxia allegedly invited users to invest PHP 1,000 to PHP 5,000 through its app in return for rapid earnings linked to group buying and a purported artificial intelligence hosted raffle. Although registered as a corporation, the company lacked authority to offer securities, while its promoters and agents were not licensed to deal in securities. The SEC also denied Novaluxia’s claim that the regulator had agreed to remove an earlier investor advisory, clarifying that the legal certification cited by the company did not cover orders issued by the Enforcement and Investor Protection Department.

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