Moratorium on New Online Lending Platforms

SEC Memorandum Circular No. ___
Series of 2021
TO : FINANCING AND LENDING COMPANIES
SUBJECT : MORATORIUM ON NEW ONLINE LENDING PLATFORMS DATE : 02 NOVEMBER 2021 WHEREAS, the Securities and Exchange Commission’s (SEC) exercises regulatory and supervisory authority over financing companies (FCs) and lending companies (LCs) under Republic Act No. 8556, or the Financing Company Act of 1998, and Republic Act No. 9474, or the Lending Company Regulation Act of 2007, respectively; WHEREAS, it is the State’s policy to regulate the establishment of LCs and FCs, and to place their operation on a sound, efficient, and stable condition, and to prevent and mitigate practices prejudicial to public interest; WHEREAS, the SEC has received numerous complaints relating to alleged violations by online lending platforms (OLPs)1 of existing regulations on the operation of, and the provision of lending and financing services, which resulted in the imposition of appropriate sanctions on erring entities; WHEREAS, the SEC is currently drafting the Guidelines on the Registration and Licensing of OLPs, a type of internet finance which facilitates online lending operations to meet the financial requirements of individuals and/or small and medium-sized enterprises, for purposes of prescribing documentary requirements and qualifications of FCs and LCs relative to the operation of their respective OLPs, among others; WHEREAS, there is also a need to closely monitor and assess the operations of existing OLPs in a manner that promotes lending and financing businesses, and allows the industry to thrive and develop, while minimizing any risk that comes with or is inherent in the operation of online lending, to ensure the protection of consumers; WHEREFORE, in view of the foregoing, the SEC hereby imposes a moratorium on the registration of new OLPs, including existing FCs and LCs that will engage in OLPs.

1 OLPs shall refer to mobile lending applications, websites, and other FinTech-enabled programs or systems where the services and products of FCs and LCs are made available. 10 Published:
Philippine Daily Inquirer, 5 November 2021
Philippine Star, 5 November 2021
Filed with UP Law Center: 5 November 2021

Only the recorded lending and financing companies with OLPs as of 2 November 20212 may operate and be used for online lending/financing, which shall be subject to strict monitoring by the Commission of their compliance with all applicable laws, rules, and regulations; Provided that, this is without prejudice to the outcome of any pending administrative actions involving FCs and LCs. This moratorium shall take effect immediately and shall be in effect until the same is formally lifted by the Commission. Pasay City 02 November 2021. For the Commission:
EMILIO B. AQUINO
Chairperson

2 Based on SEC Memorandum Circular No. 19, Series of 2019 (Disclosure Requirements on Advertisements of Financing Companies and Lending Companies and Reporting of Online Lending Platforms) submissions. The list of the recorded lending and financing companies with OLPs as of 2 November 2021 is attached herewith and may be subject to changes and amendments.

List of Financing and Lending Companies
Registered with the SEC and their Online Lending Platforms as reported pursuant to SEC MC 19, series of 2019 As of 02 November 2021 Company Name Registration Number C.A. No. 1 9F Lending Philippines Incorporated CS201904471 2916 2 Acom Consumer Finance Corporation CS201724897 1140 3 Aeon Credit Service (Philippines) Inc CS201300789 1055 4 And Financing Corporation CS201840930 1187 5 Armorak Lending Inc CS201908271 2988 6 Asialink Finance Corporation A199711768 570 7 Asiasource Financial Inc CS201412567 1085 8 Cash Mart Asia Lending Inc. CS201610084 1849 9 Cashbee Lending Services Inc. CS201912321 3041 10 CashMum Lending Investors Corp. CS202102336 3413 11 Cashtrees Lending Corp CS202002428 3245 12 Codeblock Lending Inc. CS201913681 3059 13 Convenience Cash Lending Corp. 2020090002200-05 3319 14 Creditable Lending Corporation CS201817516 2749 15 DF Credit Lending Corporation CS202002430 3244 16 Digido Finance Corp CS202003056 1272 17 Dolphin Lending Investor, inc. CS201911897 3037 18 Easycash Lending Company, Inc CS20101882 640 19 E-Borrow Lending Corp. 2020100002616-030 3333 20 Elending Lending Inc. CS201912383 3044 21 Excellent Era Lending Service Corp CS201913044 3056 22 Fast Coin Lending Corp CS20190000277 3140 23 Fcash Global Lending Inc CS201803813 1149 24 Fidoph Lending Corporation CS201825101 2832 25 Finance Technologies Inc. Doing Business under the name of Pitacash CS201902369 1200 26 Fingertip Lending Corp CS2020070001053 3298 27 First Digital Finance Corporation CS201516347 1101 28 Flash Cash 101 Lending Corp. CS201915317 3083 29 FT Lending Master Philippines Corp CS201910863 3025 30 Fuse Lending Inc. CS201617622 1897 31 Grab Financial Services Philippines, Inc CS201905977 1210 32 Global Dominion Financing, Inc. CS200305834 530 33 Got-IT Lending Inc. CS201909840 3006 34 HC Consumer Finance Philippines CS201301354 1071 35 Hi-fin Lending inc. CS201910995 3027 36 HT Financial lending Services (PH) Corp CS201905455 2930

37 Hupan Lending Technology Inc. CS201901197 2879 38 Inclusive Credit Lending Inc. CS201909928 3007 39 Joywin Lending Investor, Inc. CS201826247 2859 40 Just Smile Lending Corporation CS202011342 3379 41 King Cash Lending Investors Inc CS202104554 3442 42 Kusog Pera Lending Inc. CS201916669 3118 43 Leapgen Lending Inc. CS201915717 3089 44 LHL Online Lending, Inc. CS201916699 3119 45 Link Credit Lending Investors Inc CS201914644 3072 46 Magician of Money Lending Corp. CS201918391 3157 47 Makati Loan, Inc. CS201917209 3130 48 Mali Lending Corp CS201907662 2968 49 Masaganang Buhay Finance Philippines Corporation CS201824008 1185 50 Microdot Lending Corporation CS201951287 2921 51 Moneycat Financing Inc. CS201953073 1254 52 Mr Angel Credit Corp. CS201424334 1669 53 Mycash Lending Investors Inc. CS201840987 2814 54 Myloan Lending Investor Inc. CS201900197 2866 55 Neuroncredit Financing Company Inc. CS201816338 1178 56 Online Loans Pilipinas Financing, Inc. CS201726430 1181 57 Paloo Financing Inc CS201800209 1162 58 Pera247 Lending Corporation CS201734339 2582 59 Peso Redee Financing Co. Inc. CS201804564 1165 60 Philippine Castrout Lending Corporation CS201910407 3015 61 Philippine Microdot Financing Corp. CS201907350 1214 62 Philippine RUP Financing Corporation CS201909023 1218 63 Philippine Vastness Lending Corporation CS201918401 3158 64 Plentina Lending Inc. CS20200001117 3266 65 Populus Lending Corporation CS201914390 3066 66 Prima Fintech (Philippines) Lending Corporation CS201951100 2917 67 Prime Global Finance Corporation A199610344 185 68 Putu Novi Financing Corporation CS201913599 1230 69 Quark Financing Corp. CS20200000916 1274 70 Qcash Finance Corporation CS201918916 1253 71 Radiowealth Finance Company Inc. AS9600005A 173 72 Right Choice Finance Corp CS201612058 1189 73 Royal Yohoo Lending Investors Corporations CS201906145 2940 74 Scoreone Financing Corp CS201919995 1257 75 Second Pay Financing, Inc CS201908038 1217 76 Snapcash Lending Inc. CS201804836 2658 77 Sumisho Motor Finance Corporation CS200917691 1007 78 Summerset Lending Incorporation CS201903733 2906 79 Sumulong Financing, Inc CS201915712 1238 80 SunCash Lending Investor Corp. CS201825707 2846

81 Sunloan Lending Investors Corporation CS201900565 2872 82 Sunprime Finance Inc. CS201916698 1241 83 Surity Cash Lending Investors Corp CS201910185 3013 84 Tala Financing Philippines Inc CS201710582 1132 85 Tekwang Lending Corp. CS201911369 3032 86 Temple Tech Finance Corp. CS201820732 1228 87 Toyota Financial Services Philippines Corporation CS200251691 256 88 Transnational Financial Services Inc 138629 1017 89 Treasure Bowl Fintech Lending Corp. CS201916340 3101 90 Umbrella Lending Investor Inc CS201914303 3068 91 Unistar Credit and Finance Corporation CS200528016 902 92 U-Peso Lending Investors Corp. CS201816691 2739 93 U-Peso.PH Lending Corp CS201814908 2718 94 Vamo Lending Inc. CS20200000915 3261 95 Vidalia Lending Corp CS200813771 279 96 Warm Cash Lending Corp 2021030009095-02 3427 97 WeFund Lending Corp. CS201825672 2844 98 XLKash Lending Corp. CS201917309 3136 99 Y Finance Inc. CS201800494 1163 100 Yinshan Lending Inc CS201900108 2860 101 Yulon Finance Philippines Corporation CS201806119 1167