Disclosure Requirements on Advertisements of Financing Companies and Lending Companies and Reporting of Online Lending Platforms

September 17, 2019SEC MEMORANDUM CIRCULAR NO. 19-19TO : All Financing and Lending Companies   SUBJECT : Disclosure Requirements on Advertisements of Financing Companies and Lending Companies and Reporting of Online Lending Platforms WHEREAS, the Commission is aware that Financing Companies (FCs) and Lending Companies (LCs) make their services known through various modes of advertisement, e.g., television, radio, billboard, websites, and social media (Advertisements); HTcADCWHEREAS, the Commission also notes the proliferation of online lending platforms such as websites and mobile applications (Online Lending Platforms) that are readily downloadable from mobile application stores;WHEREAS, the Commission has been receiving several inquiries as to the registration and legitimacy of FCs and LCs, especially those that operate through Online Lending Platforms;WHEREAS, the Commission exercises regulatory and supervisory authority over FCs and LCs by virtue of Republic Act No. 8556, or the Financing Company Act of 1998, as amended, and Republic Act No. 9474, or the Lending Company Regulation Act of 2007;WHEREFORE, IN VIEW OF THE FOREGOING, the Commission shall require FCs and LCs to provide the necessary information in their Advertisements...