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THE Securities and Exchange Commission (SEC) said it is intensifying its monitoring of financing and lending companies by requiring the submission of landline contact details, particularly for those operating online platforms and mobile applications.

In an order dated June 20, the SEC’s Financing and Lending Companies Division (FinLend) directed firms to provide landline numbers for both their principal offices and branches.

“The SEC is mandated to carry out the state’s policy under the Financing Company Act (FCA) and Lending Company Regulation Act (LCRA) to, among others, regulate the establishment of financing and lending companies to place their operation on a sound, efficient, and stable condition to derive the optimum advantages from them as an additional source of credits, and to prevent and mitigate, as far as practicable, practices prejudicial to the public interest,” the order said.

The agency said the company’s name and address must match those declared in its articles of incorporation.

Firms are also required to submit proof of the billing statement for the landlines to the SEC within 15 days from the issuance of the order.

If unable to comply by the deadline, a company’s president must execute an affidavit affirming that an application for a landline has been filed.

The affidavit, along with proof of application, must also be submitted within the same 15-day period.

Proof of landline installation must be submitted to the SEC within three days from the installation date.

Companies that have transferred offices or updated their registered contact details must likewise submit an affidavit, the SEC said.

“The SEC has been granted by the FCA and LCRA the power to promulgate additional requirements as may be necessary,” the order said.

Failure to submit, or late submission of, the required documents will result in penalties under the FCA or LCRA, according to the SEC.

The commission also warned that the submission of false, inaccurate, misleading, or incomplete information or documents will be deemed non-compliance and penalized in accordance with existing laws, SEC memorandum circulars, and other relevant regulations.

“Such penalties shall include, but is not limited to, suspension and/or revocation of the certificate of authority to operate as a financing or lending company,” the SEC said.

On May 30, the SEC FinLend issued an order revoking the corporate registration of 401 lending corporations for failing to submit their reportorial requirements. Their certificates of authority to operate as lending companies were also revoked.

The companies, classified as delinquent, failed to file audited financial statements, general information sheets, reports on director or trustee compensation, and director or trustee performance appraisals along with the standards or criteria used for assessment.

In October 2023, the SEC launched an amnesty program allowing companies to settle fines and penalties for late or non-compliance with reportorial requirements at reduced rates.

In a separate order dated May 27, the SEC FinLend also revoked the corporate registration of 47 financing companies for non-compliance with reportorial requirements. — Revin Mikhael D. Ochave

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