Philippine SEC cancels 401 lenders for non-compliance

The Philippine Securities and Exchange Commission (SEC) has revoked the registrations and licences of 401 lending companies for repeated failure to comply with reportorial requirements. The revocation order, issued by the SEC’s Financing and Lending Companies Department, followed the companies’ failure to submit audited financial statements, general information sheets, and board performance reports, among others. All firms had ignored an October 2023 amnesty offer and failed to comply within a six-month grace period. Under SEC Memorandum Circular 19, series of 2023, companies that fail to comply within six months of being declared delinquent are subject to registration revocation. The move underscores the SEC’s effort to enforce transparency and regulatory compliance within the lending sector.