SEC revokes registration of Fynamics Lending

MANILA, Philippines — The Securities and Exchange Commission (SEC) has cracked its whip on another erring lending company, Fynamics Lending Inc.,  which operates online lending platform Pondo Peso.

It has declared final and executory the revocation of the certificate of authority (CA) of Fynamics Lending “over its repeated failure to comply with reportorial requirements,” the SEC said.

The STAR reached out to Fynamics for comment, but no response was given as of press time.

The SEC Corporate Governance and Finance Department (CGFD) upheld its earlier order dated Dec. 6, 2021, which revoked the CA of Fynamics for its fourth violation of Rule 8(a) of the Implementing Rules and Regulations (IRR) of Republic Act 9474, otherwise known as the Lending Company Regulation Act of 2007 (LCRA).

The rule provides that a lending company that has been duly registered and granted a CA shall file with the SEC reports and manuals, including interim semi-annual financial statements, in accordance with a designated schedule.

According to the SEC,  Fynamics failed to submit its 2020 second semester interim financial statements on the Feb. 15, 2021 deadline.

The SEC gave Fynamics a chance to explain why its CA should not be revoked through a show cause letter dated July 7, 2021, and through a hearing on Oct. 11, 2021.

Fynamics  did not file an appeal, motion for reconsideration or petition for certiorari following the SEC’s issuance of the order revoking the company’s CA.

“Thus, in light of the company’s failure to respond to this department’s show cause letter and its continuous non-compliance with the reportorial requirements for lending companies, and considering that the company was sufficiently notified and given opportunities to explain its position, this department hereby finds that the revocation of the company’s CA is in order,” the SEC said.

Prior to its failure to comply with reportorial requirements to the SEC, the CGFD also previously penalized Fynamics for its first and second violations of SEC Memorandum Circular 18, Series of 2019, which provides the prohibition on unfair debt collection practices of financing companies and lending companies.