SEC revokes license of Fast Coin Lending

MANILA, Philippines — The Securities and Exchange Commission (SEC) has revoked the certificate of authority (CA) of a lending app for non-compliance with SEC regulations, bringing to 39 the total number of lending companies with cancelled licenses due to various violations of SEC rules and regulations.

Fast Coin Lending Corp. was found to have committed several violations of SEC rules on disclosure requirements on advertisements.

The company was also found to have violated the implementing rules and regulations (IRR) of Republic Act 9474, otherwise known as the Lending Company Regulation Act of 2007 (LCRA).

In an order dated Jan. 10, the SEC Corporate Governance and Finance Department (CGFD) found that Fast Coin Lending Corp. has committed several violations of SEC Memorandum Circular 19 which provides the Disclosure Requirements on Advertisements of Financing Companies and Lending Companies and Reporting of Online Lending Platforms.

The SEC circular requires lending and financing companies to report their online lending platforms to the SEC prior to their launch and operation.

Lending companies must also disclose in their advertisements and online lending platforms specific information, such as their corporate names, SEC registration numbers, and certificates of authority.

According to the SEC, Fast Coin Lending has been operating Cashcow Mobile Application despite failing to submit the required disclosures to the SEC, while also operating two more unregistered lending platforms Cashguard and Coco Peso.

The company was issued a CA on Feb.  12, 2020, which gave it until June 11, 2020 to commence operations. Failure to operate within the time frame warrants the suspension of the issued CA, based on the LCRA.

The SEC has  revoked the primary registration of a total of 2,084 lending companies for their failure to secure the requisite secondary license.