The Securities and Exchange Commission (SEC) has revoked the corporate registration of the entity operating the Yopeso, Morepeso and Rapidpeso online lending platforms, citing continuous violation of disclosure rules.
The SEC announced on Monday that its Corporate Governance and Finance Department (CGFD) had similarly canceled the lending license of Flying Bear Lending, the company behind the three lending platforms.
The corporate watchdog said Flying Bear had continuously violated the disclosure requirements on advertisements of financing companies and lending companies and reporting of online lending platforms.
Lending and financing companies are required to report their online lending platforms to the SEC prior to their launch and operation. They are further required to register the business or trade names, and to report any online lending platform which they plan to develop, operate, or utilize no later than 10 days before their launch.
Flying Bear had failed to report the operation of Yopeso and Morepeso to the SEC. The CGFD then ordered it to take down the apps from Google Play and other distribution services. The same violation was cited in the case of RapidPeso.
Furthermore, Flying Bear failed to comply with Republic Act No. 9474, or the Lending Company Regulation Act of 2007 and its implementing rules and regulations, the SEC said. Specifically, it failed to start operations within 120 days from the date of issuance of its certificate of authority. It also failed to use at least 51 percent of its funds for direct lending purposes as required by the law.
“[The CGFD] holds that the number, nature, gravity, and duration of violations, its non-compliance with this department’s directives, and its failure to attend the hearing to explain its side all showcase flagrant disrespect for this Commission and apathy for the very nature of lending business which is imbued with public interest,” the order read.
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