SEC revokes license of Robocash Finance

MANILA, Philippines —  The Securities and Exchange Commission (SEC) has revoked the license of Robocash Finance Corp. to operate as a financing company.

This came after the SEC found the company operating several branches without the necessary license or certificate of authority (CA).

The SEC’s order followed on-site audits conducted on March 7 and July 5.

The Corporate Governance and Finance Department (CGFD) of the SEC issued the order of revocation on Dec. 12 after establishing that Robocash violated the implementing rules and regulations of Republic Act 8556 or the Financing Company Act of 1998 (FCA IRR).

Robocash also confirmed the violations, but argued that it did not maliciously violate Section 6(a) of the FCA IRR by putting up branches without the necessary CA.

“It may be well to note that respondent was able to secure CAs for [32] separate branches. Thus, it is even more appalling that despite being aware of the requirement of the law, respondent knowingly and willingly committed repeated violations thereof,” the CGFD said in its revocation order.

The SEC may suspend or revoke an erring financing company’s CA after proper notice and hearing.

Aside from suspension or revocation, the SEC may also impose a basic fine of not less than P10,000 plus P100.00 for each day of continuing violation, but no more than P100,000 and other sanctions within its power.

The SEC recognized Robocash’s efforts to help the underbanked, but said it should be compliant with the law.

“As a final note, while the respondent’s goal of catering to the needs of the underserved is laudable, it must always be remembered that compliance with the provisions of the law is foremost. The department will not hesitate to impose the appropriate penalties in cases of violation, even the extreme penalty of revocation of the certificate of authority,” the SEC said.

The SEC has already revoked the primary registration of 2,081 lending and financing companies without the necessary CA.

The move is part of an ongoing crackdown on illegal lending and financing activities.