SEC revokes FastCoin’s lending license

The Securities and Exchange Commission (SEC) has revoked the license of Fast Coin Lending Corp. to operate as a lending firm for non-compliance with the agency’s regulations and non-operation within a prescribed period.

In a statement, the SEC said it revoked FastCoin’s Certificate of Authority (CA) "for its continuous non-compliance with SEC Memorandum Circular No. 19, Series of 2019 (SEC MC 19) and its non-operation within 120 days from the grant of its CA."

Citing an order dated January 10, the corporate regulator said its Corporate Governance and Finance Department (CGFD) found that FastCoin has committed several violations of SEC MC No. 19.

The circular provides the Disclosure Requirements on Advertisements of Financing Companies and Lending Companies and Reporting of Online Lending Platforms (OLPs).

The SEC said the company was also found to have violated the Implementing Rules and Regulations (IRR) of Republic Act 9474, otherwise known as the Lending Company Regulation Act of 2007 (LCRA). 

It said that FastCoin had been operating the Cashcow Mobile Application despite failing to submit the required disclosures to the SEC, while also operating two other OLPs, namely Cashguard and Coco Peso, without registering the entities with the SEC.

The SEC said that its MC No. 19 requires lending and financing companies to report their OLPs to the commission prior to their launch and operation. 

Lending companies must also disclose in their advertisements and OLPs specific information, including their corporate names, SEC Registration Numbers, and CAs.

The rules further require lending companies to register their OLPs as business or trade names, and to report any OLP that they plan to develop, operate, or utilize no later than 10 days before their launch, according to the SEC.

The corporate regulator said FastCoin also failed to comply with Rule 3(e) of the LCRA IRR, which states that "a corporation/company that has been duly registered and granted a [CA] to operate as a Lending Company shall commence operations 120 days from the date of grant of such 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 the time frame warrants the suspension of the issued CA, based on the LCRA. 

"[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 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,” the SEC said, citing the decision of its CGFD.

GMA News Online reached out to FastCoin for comment through the contact numbers listed on its website, but no response had been received as of this posting.

The SEC said the revocation of FastCoin’s CA brings to 39 the total number of financing or lending companies with canceled licenses due to various violations of SEC rules and regulations. 

To date, the corporate regulator has revoked the primary registration of 2,084 lending companies for their failure to secure the requisite secondary license—a CA to operate as a lending or financing company—pursuant to the LCRA, and for other violations. —VBL, GMA Integrated News