Many lending and financing businesses in the Philippines may face stricter enforcement moving forward. The Securities and Exchange Commission (SEC) has canceled the corporate registrations and licenses of 56 lending and financing companies for repeatedly failing to meet compliance requirements.
This move is part of the SEC’s effort to protect investors and prevent financial fraud in the lending and financing sector.
Why Were These Firms Shut Down?
According to SEC’s Financing and Lending Companies Division (FinLenD), these companies committed the following violations:
47 firms failed to submit required reports at least three times within five years, including:
- Audited Financial Statements (AFS)
- General Information Sheets (GIS)
- Director or Trustee Compensation Reports
- Performance Appraisals for Directors/Trustees
– 7 companies failed to submit their business plans, a requirement under SEC Memorandum Circular No. 3, Series of 2022
– 2 firms did not provide official email addresses or mobile numbers, which are required for SEC transactions
Even after being issued show cause letters, these companies did not comply—prompting the SEC to revoke their primary registration and Certificates of Authority to Operate.
What Law Did They Violate?
Under Republic Act No. 11232, also known as the Revised Corporation Code of the Philippines, the SEC has the power to place non-compliant corporations under delinquent status or cancel their registration entirely.
This recent action is part of the SEC’s broader crackdown to protect the public and investors from possible fraud and illegal lending activities.
In a similar case, Digido Finance Corp. had its corporate registration and licenses revoked in May 2025. Its affiliated online lending platforms—UnaPay, UnaCash, and Digido Philippines Online Loan—were also shut down for non-compliance.
What You Should Do Next
If you’re running a lending or financing business or planning to register one, make sure you:
- Keep your reportorial requirements up to date
- Comply with SEC Memorandum Circulars and deadlines
- Register your official email and contact details
- Seek expert advice to avoid penalties or registration revocation
Need Help with SEC Compliance?
At UNA Tax and Accounting Services, we help lending and financing companies stay compliant with SEC and BIR requirements. From business registration to ongoing reporting, our experts are here to assist you every step of the way.
Book your FREE 15-minute consultation today or Email: sales@una-acctg.com
Source: https://business.inquirer.net/528569/sec-cancels-papers-of-56-delinquent-firms