SEC revokes online lending platform operator’s license

The Securities and Exchange Commission (SEC) has revoked the registration of the entity operating online lending platforms Yopeso, Morepeso and Rapidpeso, citing continued violation of disclosure rules.

The SEC announced on Monday that its Corporate Governance and Finance Department (CGFD) also revoked the lending license of Flying Bear Lending, the company behind the three lending platforms.

The company’s watchdog said Flying Bear has consistently violated disclosure requirements on advertisements from finance companies and loan companies and reports from online lending platforms.

Lending and finance companies are required to report their online lending platforms to the SEC before they launch and operate. They are further required to register trade or business names and report any online lending platform they plan to develop, operate or use no later than 10 days before their launch.

Flying Bear had not reported the Yopeso and Morepeso trade to the SEC. The CGFD then ordered him to remove the apps from Google Play and other distribution services. The same violation was cited in the RapidPeso case.

In addition, Flying Bear failed to comply with Republic Act No. 9474 or the Credit Union Regulation Act of 2007 and its implementing rules and regulations, the SEC said. Specifically, it failed to commence operations within 120 days of the date its Certificate of Authority was issued. It also failed to use at least 51% of its funds for direct lending, as required by law.

“[The CGFD] considers that the number, nature, gravity and duration of the infringements, its failure to comply with the directives of this service and its absence from the hearing to explain its position show a flagrant lack of respect for this Commission and an apathy for the very nature of lending activity that is imbued with public interest,” the order reads.

Subscribe to our corporate newsletter

Read more

Don’t miss the latest news and information.

To subscribe to MORE APPLICANT to access The Philippine Daily Inquirer and over 70 titles, share up to 5 gadgets, listen to news, download as early as 4am and share articles on social media. Call 896 6000.

For comments, complaints or inquiries, Contact us.

Comments are closed.