The Securities and Exchange Commission (SEC) has canceled the primary registration and secondary licenses of 401 lending companies for failing to comply with reporting requirements.
In a statement on Monday, the corporate watchdog identified these companies as delinquent.
“The subject companies were found to have failed 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,” it said.
Their certificates of authority to operate a lending company have likewise been revoked, the regulator added.
The SEC said the companies were initially encouraged in October last year to participate in its amnesty program, which offered companies the opportunity to settle their fines and penalties for late and noncompliance with reporting requirements at discounted rates.
“Failure of the companies to avail of the program resulted in their placement under delinquent status,” the SEC said, citing its function under the Revised Corporation Code (RCC or RA11232).
The RCC authorizes the SEC to place a corporation under delinquent status for its failure to submit reportorial requirements three times, consecutively or intermittently, within five years.
“Under SEC Memorandum Circular No. 19, Series of 2023, corporations with a delinquent status have a period of six months from the receipt of the order of delinquency to submit their reportorial requirements. Failure to comply authorizes the Commission to revoke their corporate registration,” the SEC said.
