SEC revokes license and registration of Fast Coin lending firm
BAGUIO CITY, Philippines — The Securities and Exchange Commission has revoked Fast Coin Lending Corp.'s authority to operate as a lending company for failing to declare operations of other lending services, among other violations of SEC guidelines.
SEC's Corporate Governance and Finance Department (CGFD) found that Fast Coin had been operating Online Lending Platform Cashcow Mobile Application despite failing to submit required disclosures while also operating Cashguard and Coco Peso without registering these with the commission.
SEC's Memorandum Circular 19 requires lending and financing companies to report their OLPs prior to launch and operation. Lending companies must also disclose in their advertisements and OLPs specific information, such as their corporate names, SEC Registration Numbers, and Certificates of Authority.
The rules further require lending companies to register their OLPs as business or trade names, and to report any OLP which they plan to develop, operate, or utilize no later than 10 days before their launch.
SEC said Fast Coin also violated the Lending Company Regulation Act requirement to operate within 120 days of being issued a Certificate of Authority. The company was issued a CA on February 12, 2020, which gave it until June 11, 2020 to commence operations. Failure to operate within that period would mean the CA would be revoked.
“[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 [CGFD] deems it appropriate under the circumstances to revoke [Fast Coin Lending’s] Certificate of Authority," the SEC order read.
"The revocation of its primary license or Certificate of Incorporation is likewise appropriate," SEC's CGFD said.
The SEC has so far revoked the licenses of 39 lending companies for various violations. To date, the SEC has also revoked the primary registration of a total of 2,084 lending companies for their failure to secure the requisite secondary license— a CA to Operate as a Lending/Financing Company— pursuant to the LCRA, and for other violations.
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