THE SECURITIES and Exchange Commission (SEC) is lifting the moratorium on the registration of new online lending platforms (OLP) starting Aug. 1.
At the same time, the SEC raised the capital and disclosure requirements for financing and lending companies, as it seeks to improve the regulatory oversight of the sector and boost consumer protection.
The corporate regulator on Tuesday issued Memorandum Circular No. 20, which sets the guidelines prescribing prudential, disclosure and market conduct requirements for financing companies (FC) and lending companies (LC), as well as lifts the moratorium on new OLPs.
“The commission recognizes the need to lift the moratorium… in order to promote responsible innovation, stimulate economic activity among FCs and LCs, and ensure the operation of OLPs is aligned with consumer protection, market integrity, prudential objectives, financial inclusion, ease of market access, and alignment with the global trend of digitalization,” the SEC said.
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