SEC cancels license of Fast Coin Lending
The Securities and Exchange Commission (SEC) revoked the license of Fast Coin Lending Corp. for various violations, bringing the number of companies with canceled papers to 39 amid a broader crackdown on firms with questionable lending operations.
Fast Coin was operating several lending platforms while failing to submit the required documents, the SEC said in a statement.
Because of this, the corporate regulator revoked the certificate of authority allowing Fast Coin to undertake lending operations.
“[F]ast 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 said.
“The company was also found to have violated the Implementing Rules and Regulations (IRR) of Republic Act No. 9474, otherwise known as the Lending Company Regulation Act of 2007,” it added.
The corporate watchdog said Fast Coin was operating the Cashcow Mobile app while failing to submit the required disclosures. The company was also found operating Cashguard and Coco Peso without registering the entities with the Commission.
The SEC circular states that lending and financing companies must report their online platforms to the Commission prior to their launch and operation.
Lending companies must also disclose in their advertisements their lending platforms’ specific information, such as their corporate names and registration numbers.
The rules further require lending companies to register their platforms as business or trade names. They must also report plans for future platforms “no later than 10 days before their launch.”
The SEC said Fast Coin failed to comply with the provision that requires “a corporation/company that has been duly registered and granted a [certificate of authority] to operate as a lending company shall commence operations within 120 days from date of grant of such authority.”
The SEC said the company did not begin lending operations within the required timeframe.
“[T]he company’s continuous failure to comply with the provisions of SEC MC 19, and, considering the Company’s wanton disregard of the [CGFD]’s directives relative to the SEC MC 19 violations, the [Corporate Governance and Finance Department] deems it appropriate under the circumstances to revoke [Fast Coin Lending’s] Certificate of Authority,” the order read.
“Considering the number, nature, gravity, and duration of [Fast Coin Lending’s] violations that warrant the revocation of its CA, this Department finds that the revocation of its primary license or Certificate of Incorporation is likewise appropriate,” it added.
