MANILA, Philippines — The Securities and Exchange Commission (SEC) has canceled the corporate registrations and secondary licenses of more companies as the firm continues its crackdown against erring lending and financing firms.
On top of revoking the licenses of 47 corporations initially declared delinquent as previously reported by The STAR, the SEC said it has also issued separate orders for the revocation of the corporate registration of nine more companies for continuing noncompliance with their reportorial requirements.
The nine companies are Air Fish Lending Corp., Cash Mart Asia Lending Inc., Cashbee Lending Services Inc., Kayamo Atlas Lending Corp., Lucky Shell Fintech Lending Corp., Qcash Finance Corp., Whale Tail Lending Services Inc., The Golden Legacy Financing Corp. and Just Smile Lending Corp.
Of the companies, the commission said two failed to comply with SEC Memorandum Circular 28, Series of 2020, requiring the submission of official e-mail account addresses and cellphone numbers for transactions with the commission.
The remaining seven, meanwhile, failed to submit their business plans as required under SEC Memorandum Circular 3, Series of 2022, or the Implementation of Bangko Sentral ng Pilipinas Circular 1133, Series of 2021, on the ceiling/s on interest rates and other fees charged by lending companies, financing companies and their online lending platforms.
The SEC Financing and Lending Companies Department (FinLenD) said the companies failed to observe the directives of the commission despite the issuance of show cause letters and notice of deficiencies informing and directing them to comply and show proof of compliance with their reportorial requirements.
Last week, The STAR reported that the SEC revoked the licenses of nearly four dozen delinquent financing corporations
FinLenD canceled the primary registrations and certificates of authority to operating as a lending or financing company of 47 companies which have been declared delinquent pursuant to the Revised Corporation Code (RCC).
Section 177 of the RCC provides that the SEC may place any corporation under delinquent status in case of failure to submit the reportorial requirements three times, consecutively or intermittently, within a period of five years.
The 47 corporations were found by the commission to have failed to file their audited financial statements, general information sheets, director or trustee compensation report and director or trustee appraisal or performance report three times within a period of five years.