THE Securities and Exchange Commission (SEC) has revoked the corporate registration and secondary license of some 400 lending companies in the Philippines.
The licenses, according to SEC, were revoked for failing to file their audited financial statements, general information sheet, director or trustee compensation report, and director or trustee appraisal or performance report and the standards or criteria for the assessment.
The agency noted that in October 2023, it notified the companies to avail of its amnesty program, which gives them a chance to settle their fines and penalties over late and noncompliance with reportorial requirements at lower rates.
But they failed to do so, which resulted in them being tagged as delinquent.
Under the Revised Corporation Code, the SEC may tag a company as delinquent status for not submitting reportorial requirements three times, consecutively or intermittently, within a period of five years.
Corporations with a delinquent status have six months from the receipt of order of delinquency to submit their reportorial requirements. Not submitting these files will revoke their corporate registration.
Recently, the EC also cracked down on online lending platform Digido for opening and operating four branches without obtaining a certificate of authority.
It also penalized online lending apps Magic Peso and PesoWallet. (ABS-CBN News)
