The Securities and Exchange Commission (SEC) said it has revoked the license of financing firm Robocash Finance Corp. after it was discovered to have expanded branches without the proper authorization.
“The Corporate Governance and Finance Department (CGFD) of the SEC issued the order of revocation on Dec. 12, 2019 after establishing that Robocash violated the Implementing Rules and Regulations of Republic Act No. 8556, or the Financing Company Act of 1998 (FCA IRR). In the course of its monitoring procedure, the CGFD found that Robocash operated several branches without the requisite certificate of authority (CA),” it said.
“The findings were validated through onsite audits on March 7, 2019 and July 5, 2019.
Robocash also confirmed the same during a hearing on Sept. 20, 2019 and through various letters to the SEC,” it added.
The SEC said its CGFD issued a formal charge against Robocash in November this year and ordered the company to show cause why its CA should not be revoked for violation of the FCA of 1998.
“In its verified answer, Robocash admitted to establishing and operating branches without the necessary CA. The company, however, argued that it did not maliciously violate Section 6(a) of the FCA IRR by putting up branches without the necessary CA,” the SEC said.
“The CGFD found no merit in the company’s defense, saying it may be well to note that respondent was able to secure 32 CAs for 32 separate branches. Thus, it is even more appalling that despite being aware of the requirement of the law, respondent knowingly and willingly committed repeated violations thereof,” it added.
Under Section 14 of the FCA IRR, the SEC may suspend or revoke an erring financing company’s CA after proper notice and hearing. The Commission may also impose a basic fine of not less than P10,000.00 plus P100.00 for each day of continuing violation, but no more than P100,000.00, and other sanctions within its power.