SEC Revokes Corporate Registration, Secondary Licenses of 401 Lending Companies

​The Securities and Exchange Commission (SEC) has cancelled the primary registration and secondary licenses of 401 lending companies for failure to comply with the reportorial requirements, reinforcing the Commission’s campaign against erring firms and its investor protection efforts. 

In an order dated May 30, the SEC Financing and Lending Companies Department (FinLend) revoked the corporate registration of 401 corporations, which have been tagged as delinquent for their failure to submit their reportorial requirements. 

The subject companies were found to have failed to file their audited financial statements, general information sheet, director or trustee compensation report, and director or trustee appraisal or performance report and the standards or criteria for the assessment.

Accordingly, their certificates of authority to operate a lending company have likewise been revoked.

In October 2023, the SEC notified the subject companies to avail of the Commission’s amnesty program, which gave companies a chance to settle their fines and penalties over late and noncompliance with reportorial requirements at lower rates.  

Failure of the companies to avail of the program resulted in their placement under delinquent status. 

Section 177 of Republic Act No. 11232, or the Revised Corporation Code, provides that the SEC may place a corporation under delinquent status for failure to submit their reportorial requirements three times, consecutively or intermittently, within a period of five years.

Under SEC Memorandum Circular No. 19, Series of 2023, corporations with a delinquent status have a period of six months from the receipt of order of delinquency to submit their reportorial requirements. Failure to comply authorizes the Commission to revoke their corporate registration.

The list of lending companies with revoked primary and secondary licenses can be accessed through this link: https://www.sec.gov.ph/wp-content/uploads/2025/06/2025Advisories_401 Delinquent-Lending-Companies_Order.pdf