SEC revokes licenses of 401 lending firms
The Securities and Exchange Commission (SEC) has canceled the licenses of 401 lending companies for failing to submit documentary requirements as part of the regulator’s campaign to protect investors from fraud.
The corporate watchdog on Monday said the companies were tagged “delinquent” for not submitting on time their reportorial requirements, including audited financial statements, general information sheets and director or trustee compensation reports, among others.
Their primary registrations were likewise revoked, which means they are no longer in existence.
In its May 30 order, the SEC’s financing and lending companies department noted that all respondents had failed to file their requirements with the commission at least three times—either consecutively or intermittently—within a five-year period.
In October 2023, all 401 companies were encouraged to avail of the SEC’s amnesty program to avoid being tagged delinquent. Under this program, they need to pay discounted fees to keep their corporate papers.
“All the respondents failed to avail of the amnesty,” the SEC said. “Hence, the respondents’ corporate status was changed to delinquent.”
Under SEC Memorandum No. 19, Series of 2023, these companies have a chance to change their delinquent status by submitting their requirements within six months from receipt of the order of delinquency.
This comes amid the SEC’s campaign to protect investors from fraud, especially scams perpetrated by companies found to have been illegally operating.
Last month, the commission also canceled the corporate papers of 56 other lending and financing companies for likewise failing to submit required documents.
The SEC noted that the firms had “failed to observe the directives of the commission” even after the regulator issued show cause letters.
Digido Finance Corp., the operator of online lending platforms UnaPay, UnaCash and Digido Philippines Online Loan, was among the firms to have its certificates of incorporation and authority to operate as a financing company revoked.
The SEC noted that Digido had supposedly opened and operated four branches in Cavite province without securing a certificate of authority from the regulator.
Digido denied this allegation, pointing out that it had actually put up exhibit booths, which were not permanent. Therefore, these could not be treated as branches under existing laws and regulations, it said.
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