By 
The Securities and Exchange Commission (SEC) of the Philippines has revoked the corporate registrations and secondary licences of 401 lending companies for persistent failure to comply with regulatory reporting obligations.
The decision, issued through the Commission’s Financing and Lending Companies Department (FinLend) on May 30, follows the companies’ repeated neglect in submitting required documents, including audited financial statements, general information sheets, director/trustee compensation disclosures, and performance evaluation reports.
In its official statement, the SEC underscored that the enforcement action is part of a broader initiative to strengthen regulatory oversight in the lending sector and protect investors from potential risks posed by non-compliant entities.
The affected companies had previously been given an opportunity to regularize their status. In October 2023, the SEC launched an amnesty programme, offering reduced penalties for late filings and non-compliance. Despite this leniency, the companies failed to take advantage of the initiative and were subsequently classified as delinquent.
The Commission acted in accordance with Section 177 of Republic Act No. 11232 (Revised Corporation Code), which empowers it to declare corporations delinquent if they fail to file reportorial requirements three times within a five-year period, whether consecutively or intermittently.
Additionally, under SEC Memorandum Circular No. 19, Series of 2023, delinquent corporations are granted a six-month grace period from the date of notice to remedy their non-compliance. Failure to do so results in the revocation of both corporate registration and operational licences.
The SEC reiterated its commitment to upholding transparency and accountability in the financial services sector, noting that consistent enforcement is critical to fostering investor confidence and market stability.
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