The Securities and Exchange Commission (SEC) is requiring financing and lending companies operating an online platform to have a telephone landline number in their principal office and branches.
The SEC, in an order posted on its website on Friday, said these companies have 15 days to submit proof of compliance to the agency, such as a billing statement showing the landline number. The “15 days” order begins after the posting of the SEC directive.
“Should the company not be able to comply with the directive, an affidavit signed by the president stating that it has already applied for a landline application shall be submitted within 15 days, together with the proof of application. (The) proof of installation shall be submitted within three days from the date of installation of the telephone line,” the SEC said.
The SEC said the submission of false, inaccurate, misleading, or incomplete information or documents will be treated as non-compliance and will be penalized, which may include suspension and/or revocation of the company’s certificate of authority to operate as a financing or lending company.
The order follows the SEC announcement that it has canceled the primary registration and secondary licenses of 401 lending companies for failing to comply with reporting requirements.
The SEC, in a statement issued last week, stated that the companies have been considered delinquent for failing to submit their required reports.
Among the requirements that the companies have failed to submit are their audited financial statements, general information sheet, director or trustee compensation report, and director or trustee appraisal or performance report, as well as the standards or criteria for assessment, the SEC stated.
The SEC stated that the companies were initially encouraged in October last year to participate in its amnesty program, which allowed erring companies to settle or pay fines and penalties 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).
Under the RCC, the SEC may place a corporation under delinquent status for failing to submit its reportorial requirements three times, consecutively or intermittently, within a period of 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 delinquency order to submit their reportorial requirements. Failure to comply authorizes the Commission to revoke their corporate registration,” the SEC said.
