Regulatory Alerts2021-02-15
SEC Memorandum Circular No. 02 Series of 2021 on Compliance with Section 4 of SEC MC 18 Series of 2019 for Newly Registered Financing and Lending Companies
The Securities and Exchange Commission issued this circular to clarify the submission timeline for the Sworn Certification of compliance with unfair debt collection prohibitions for newly registered financing and lending companies. Entities incorporated between September 2019 and February 2021 must file within thirty days of this circular's effectivity, while those incorporated thereafter must submit within thirty days of receiving their Certificate of Authority to Operate. Failure to comply subjects these companies to penalties prescribed under Section 5 of the original Memorandum Circular No. 18, Series of 2019.
SEC Memorandum Circular No. ___ Series of 2021 TO : ALL FINANCING AND LENDING COMPANIES SUBJECT : COMPLIANCE WITH SECTION 4 OF SEC MEMORANDUM CIRCULAR NO. 18, SERIES OF 2019 FOR NEWLY REGISTERED FINANCING COMPANIES (FCs) AND LENDING COMPANIES (LCs) DATE : _____ FEBRUARY 2021
WHEREAS, SEC Memorandum Circular No. 18, series of 2019, on the Prohibition on Unfair Debt Collection Practices of Financing Companies (FC) and Lending Companies (LC) (SEC MC 18) applies to all FCs and LCs, whether existing as of the time of its effectivity or newly registered; WHEREAS, Section 4 of SEC MC 18 requires the submission of a sworn certification stating the company’s compliance with the provisions thereof (Sworn Certification); WHEREAS, there is a need to clarify the period for the submission of the Sworn Certification for FCs and LCs that were incorporated subsequent to the effectivity of SEC MC 18; IN VIEW OF THE FOREGOING, the Commission hereby issues this Memorandum Circular to guide newly registered FCs and LCs in their compliance with SEC MC 18, particularly, Section 4 thereof: Section 1. – FCs and LCs that were incorporated after 08 September 2019, the effectivity date of SEC MC 18, until the effectivity date of this Circular, shall submit the Sworn Certification within thirty (30) calendar days from effectivity hereof. Section 2. – FCs and LCs that will be incorporated subsequent to the effectivity of this Circular shall submit the Sworn Certification within thirty (30) calendar days from the issuance of their Certificates of Authority to Operate as a Financing/Lending Company. Section 3. – Violation of this Circular shall subject the FCs and LCs to the penalties prescribed under Section 5 of SEC MC 18. This Circular shall take effect immediately after its publication in two (2) national newspapers of general circulation and its posting in the Commission’s website. Pasay City, Philippines. _____________________ For the Commission: EMILIO B. AQUINO Chairperson 2 11 11 February 2021 Published: Philippine Daily Inquirer, 17 February 2021 Manila Times, 17 February 2021 Filed with UP Law Center: 15 February 2021