SEC permanently strips Pondo Peso operator of license

The Securities and Exchange Commission (SEC) has revoked the authority of Fynamics Lending Inc., operator of online lending platform Pondo Peso, to operate due to repeated failure to comply with reportorial requirements.

In an order dated Jan. 5, the SEC Corporate Governance and Finance Department (CGFD) declared final and executory the revocation of the certificate of authority of Fynamics to operate as a lending company issued on Dec. 6, 2021.

The CGFD said Fynamics violated for the fourth time rule 8(a) of the implementing rules and regulations of the Lending Company Regulation Act of 2007 or Republic Act No. 9474.

The rule requires all authorized and duly registered lending companies to file with the SEC reports/manuals, including interim semiannual financial statements, in accordance with a designated schedule.

Fynamics failed to submit its 2020 second semester interim financial statements by the Feb. 15, 2021 deadline, which the SEC said was the fourth time the company had not complied with the submission of this report.

Fynamics likewise failed to respond to a show cause letter dated July 7, 2021. Representatives also did not appear in a hearing scheduled on Oct. 11, 2021.

“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 (certificate of authority) is in order,” the CGFD said.

Fynamics did not file an appeal nor did it raise a petition in court.

In addition to its failure to comply with reportorial requirements, the CGFD had also previously penalized Fynamics for violating SEC memorandum circular No. 18, Series of 2019, which prohibits unfair debt collection practices of financing companies and lending companies.

Citing an immediate need to curb “abusive” and “predatory” online lending practices, the SEC issued last November a moratorium on the registration of new online lending platforms. INQ