The Securities and Exchange Commission (SEC) has revoked the registration and licenses of 401 lending companies for failing to submit required reports to protect the public from non-compliant firms.

In an order dated 30 May but only disclosed to the press on Monday, the SEC’s Financing and Lending Companies Department (FinLend) cancelled the corporate registration of the companies, which were tagged as delinquent for not submitting audited financial statements, general information sheets, compensation reports, and performance evaluations of directors or trustees.

Their certificates of authority to operate lending businesses were also revoked.

In October 2023, the SEC offered these firms a chance to comply through an amnesty program, allowing them to settle fines and penalties at lower rates. Their failure to avail of the program led to their delinquent status.

Under Section 177 of the Revised Corporation Code, the SEC may place a corporation under delinquent status for failing to submit reportorial requirements three times within five years. 

SEC Memorandum Circular No. 19, Series of 2023, also gives delinquent firms six months to comply after receiving a delinquency notice, after which the SEC may revoke their registration.