March 23, 2017
SEC ADVISORY
SEC SUSPENDED 84 LENDING COMPANIES
The Securities and Exchange Commission recently suspended the primary license of 84 lending companies which failed to obtain a secondary license, or a Certificate of Authority (CA) to Operate as a Lending Company required under Republic Act No. 9474 or the Lending Company Regulation Act of 2007.
The SEC is the lead agency in the administration of said law. Section 4 of R.A. 9474 states that "x x x No lending company shall conduct business unless granted an authority to operate by the SEC."
Earlier, SEC sent out more than 300 Show Cause Letters, not only once but twice, to registered companies engaged in lending who have not secured a CA to Operate as a Lending Company. The Show Cause Letters required the companies to explain why their certificates of registration (as a corporation) should not be suspended in view of the failure to secure CA.
Out of the 300 or so second Show Cause Letters, 84 were returned to sender.
In view of their failure to respond to the Show...
