SEC warns vs illegal lending firms

MANILA, Philippines - The Securities and Exchange Commission (SEC), the country’s corporate watchdog, has warned the public against the illegal operations of a lending company.

In a public notice, the corporate regulator said Honesty, Unity, Love and Loyalty for Self Reliance Association Inc., while registered with the commission, “is not authorized to engage in the business of lending of money.”

“Furthermore, the Bangko Sentral ng Pilipinas certified that the same corporation is not authorized by the Monetary Board to engage in the [lending] activities,” it added.

SEC laid out the guidelines before a company can engage in the business of accumulating the savings of member for loans to other members.

For instance, at least five but not more than 15 members of a well-defined group may form an association.

An association, prior to transacting any business, shall secure a license from the Monetary Board and register with the SEC, the agency said.

The SEC has stepped up efforts to warn the public against fraudulent business practices following a large scale investment scam in 2012.

In 2012, Pagadian-based Aman Futures Group Philippines Inc. was exposed as a P12-billion investment scam, defrauding thousands of politicians, professionals, businessmen and employees.