SEC revokes license of lending firm

MANILA, Philippines — The Securities and Exchange Commission (SEC) has revoked the certificate of authority of Wealth and Personal Development Lending Inc. to operate as a lending company.

It also slapped an administrative fine of more than P2 million against the lending firm and its officers “for its repeated failure to comply with reportorial requirements and alleged involvement in illegal activities,” the SEC said.

The SEC’s Financing and Lending Companies Division found that Wealth and Personal Development Lending has failed to submit several reports as required under Republic Act 9474 or the Lending Company Regulation Act (LCRA).

According to the LCRA, lending companies are required to pay an annual fee no later than 45 days before the anniversary date of their CA. They must also submit a general information sheet (GIS), annual financial statements (AFS), and special forms for financial statements.

However, records of FinLend showed that the company belatedly paid its annual fee for 2017 and 2018, and no longer made payments since 2019.

No submissions were likewise made for its GIS since 2021; AFS since 2019; and special forms for financial statements from 2019 up to present according to FinLend.

“The continuous failure of the [company] to submit its GIS, AFS, and special forms for financial statements amounts to non-compliance with the LCRA-IRR, SEC requirements, and orders warranting the revocation of its authority,” the SEC said in its revocation order issued last month.

Despite its non compliance with reportorial requirements, Wealth and Personal Development Lending continued its operation as a lending company.

A resolution issued by the House of Representatives also indicated the company’s alleged involvement in a drug buy-bust operation conducted by the Philippine National

Police Drug Enforcement Group.

The company also failed to submit a business plan and impact evaluation report provided under memorandum circular 3, which implemented Bangko Sentral ng Pilipinas Circular No.

1133 on the ceiling/s on interest rates and other fees charged by lending companies, financing companies, and their online lending platforms.