The Securities and Exchange Commission (SEC) said it revoked the primary registration and secondary licenses of 401 lending companies for their failure to comply with the reportorial requirements.
The SEC Financing and Lending Companies Department (FinLend) said in an order dated May 30, 2025 these companies have been delinquent in submitting their reportorial requirements, including 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.
Their certificates of authority to operate a lending company have also been revoked.
It said these firms had been informed about the agency’s amnesty program, which gave companies a chance to settle their fines and penalties over late and noncompliance with reportorial requirements at lower rates. These firms, however, failed to avail of the program, which resulted in their placement under delinquent status.
Section 177 of Republic Act No. 11232, or the Revised Corporation Code, provides that the SEC may place a corporation under delinquent status for failure to submit their reportorial requirements three times, consecutively or intermittently, within a period of five years.
