MANILA, Philippines - Local preneed firm Primanila Plans Inc. has lost its appeal to nullify a 2008 Securities and Exchange Commission cease-and-desist order stopping its officers from selling and offering preneed policies not registered with the commission.

In its decision, the Court of Appeals 11th Division sided with the SEC decision that Primanila was selling and collecting premiums for Primasa Plans, which was being advertised in the Primanila website. Primanila said it never sold the plans since the person who conceptualized it tendered his resignation in 2006.

The CA said the SEC issued a cease and desist order against Primanila on several grounds including the Primasa Plan advertisement on its website; the company's failure to renew its dealer’s license for 2008; its failure to deposit to the trust fund the premiums it collected from 410 enlisted personnel who are planholders; and for underdeclaring the total amount of its collection in 2007.

“From the foregoing, there is no denying that the cease and desist order was issued by the SEC with ample basis. It cannot be gainsaid that the above acts of the petitioner, unless restrained, will likely cause grave or irreparable injury or prejudice to the investing public,” the CA said.

The decision was penned by Associate Justice Normandie Pizarro. Associate Justices Hakim Abdulwahid and Ruben Ayson concurred with the ruling.