On 20 March 2017, the Securities and Exchange Commission (“SEC”) issued a Notice regarding modified requirements for lending and financing companies, pursuant to SEC Resolution No. 207, Series of 2017. In order to secure a Certificate of Registration and Authority (“CRA”) from the SEC to operate as a financing or lending company, all incorporators and stockholders of said company shall be required to submit a valid clearance from the National Bureau of Investigation. Moreover, the application for the CRA must include a Treasurer’s Affidavit certifying that at least twenty-five (25%) percent of the authorized capital stock of the corporation has been subscribed, and at least twenty-five (25%) percent of the total subscription has been paid, and authorizing the SEC to examine and verify the bank deposit representing the paid-up capital of the lending/financing company.
In the event that the paid-up capital is not deposited or withdrawn before the articles of incorporation is approved, the lending/financing company shall be deemed to have waived its right to a notice and hearing in the revocation of its Certificate of Incorporation.
Compliance with the updated requirements shall be enforced starting 01 April 2017.