Investment Company

• Investment Company


  A stock corporation primarily engaged or holds itself out as being engaged primarily, or proposes to engage, in the business of investing, reinvesting and trading in securities
• Investment companies are divided into open-end and closed-end companies, defined as follows:


  
  

  • "Open-end company" means an investment company which is offering for sale or has outstanding any redeemable security of which it is the issuer.
  • "Closed-end company" means any investment company which offers for sale affixed number of non-redeemable securities which are offered in an initial public offering and thereafter traded in an organized market as determined by the Commission and Exchange
• Pursuant to Republic Act No. 2629, otherwise known as the Investment Company Act (“ICA”) and Republic Act No. 8799 otherwise known as the Securities Regulation Code (“SRC”) the Commission is granted the authority to prescribe the regulation of investment companies, and to require them to register with the Securities and Exchange Commission (“Commission”) and to comply with certain standards including among others, the regular public disclosure of financial condition, investment policies and objectives, and their fund portfolios as well as their pricing and fees.
• The Commission is also authorized to regulate Fund Managers and other parties involved in the operation of investment companies.