SEC cancels papers of 56 delinquent firms

INQUIRER.net FILE PHOTO

MANILA, Philippines – The Securities and Exchange Commission (SEC) has canceled the corporate papers of 56 lending and financing companies for failing to submit required documents in a bid to protect investors from possible fraud.

In a statement over the weekend, the corporate watchdog said its financing and lending companies department (FinLenD) had specifically revoked the primary registrations and certificates of authority to operate of the erring firms.

According to the SEC, 47 of these companies have failed to submit reportorial requirements three times within a period of five years.

READ: SEC cracks down on sham investment, lending firms

These include audited financial statements, general information sheets, director or trustee compensation reports and director or trustee appraisal or performance reports.

The SEC FinLenD likewise pointed out that the firms had “failed to observe the directives of the commission” even after the regulator issued show cause letters.

Republic Act No. 11232, or the Revised Corporation Code, states that the SEC is authorized to place any corporation under delinquent status under these circumstances.

Meanwhile, seven firms failed to submit their business plans as required under SEC Memorandum Circular No. 3, Series of 2022.

The remaining two did not submit official email account addresses and cell phone numbers for transactions with the SEC.

This forms part of the regulator’s crackdown on erring lending and financing companies, especially those found to have been illegally operating, to protect investors from fraud.

Last month, Digido Finance Corp. had its certificates of incorporation and authority to operate as a financing company revoked.

Its authority to operate its recorded online lending platforms, UnaPay, UnaCash and Digido Philippines Online Loan, was likewise canceled. INQ