Regulatory Alerts2026-07-07
Added · Updated
SEC MC No. 20, Series of 2026: Prudential, Disclosure, and Market Conduct Guidelines for Financing and Lending Companies
The Securities and Exchange Commission issued Memorandum Circular No. 20, Series of 2026 to lift the moratorium on Online Lending Platforms and prescribe comprehensive prudential, disclosure, and market conduct requirements for Financing and Lending Companies. The regulation mandates minimum paid-up capital thresholds of 15 million pesos for new Financing Companies and 5 million pesos for new Lending Companies, while requiring existing entities to meet higher capital standards if they operate online platforms. Additionally, the circular establishes a single Certificate of Authority policy, enforces strict disclosure rules for branch offices and online platform names, and aligns operations with consumer protection laws including data privacy and truth in lending standards.