Online lending platform license revoked by SEC
The Securities and Exchange Commission (SEC) revoked Fynamics Lending Inc.’s license to operate as a loan company due to its repeated failure to comply with reporting requirements.
In an order dated January 5, the SEC’s Corporate Governance and Finance Department (CGFD) affirmed its earlier order dated December 6, 2021 revoking the certificate of authority of Fynamics, which operates the lending platform online Pondo Peso, for its fourth violation of the lending company. Regulatory Act (LCRA) of 2007.
Rule 8(a) of the LCRA Rules and Regulations provides that a loan company which has been duly registered and obtained a CA must file with the SEC reports/manuals, including semi-annual financial statements intermediaries, according to a designated schedule.
Fynamics failed to file its second-half 2020 interim financial statements by the February 15, 2021 deadline, in accordance with SEC Memorandum Circular No. 3, Series of 2013 — the fourth time the company has failed to file. not comply with the submission of said report.
The CGFD gave Fynamics a chance to explain why its CA should not be revoked through a show cause letter dated July 7, 2021 and a hearing on October 11, 2021. However, Fynamics did not provide an explanation or appeared at the hearing.
“So, in light of the company’s failure to respond to this department’s show cause letter and its continued non-compliance with reporting requirements for loan companies, and considering that the company has been sufficiently informed and given an opportunity to explain its position, this department hereby concludes that the revocation of the Company’s CA is in order,” the CGFD said.
Additionally, Fynamics has not filed an appeal, motion for reconsideration or motion for certiorari following the SEC’s issuance of the order revoking the company’s NOC.
In addition to its failure to comply with SEC reporting requirements, the CGFD also previously sanctioned Fynamics for its first and second violations of SEC Memorandum Circular No. 18, Series of 2019, which provides for the prohibition of unfair practices. Debt Collection Financing Companies and Loan Companies.
“[I]In view of the foregoing, and pursuant to Part IV, Rule II, Sec. 2-4(a) of [Revised Rules of Court], the order revoking Fynamics’ certificate of authorization to operate as a lending company is final and binding. »