The Securities and Exchange Commission (SEC) has declared final and binding the revocation of Fynamics Lending Inc.’s Certificate of Authority (CA) to operate as a loan company.
In a statement, the SEC said it comes after Fynamics repeatedly failed 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 CA of Fynamics, which operates the online lending platform Pondo Peso.
This is his fourth violation of Rule 8(a) of the Implementing Rules and Regulations (IRR) of Republic Act No. 9474, also known as the Company Regulation Act of 2007. credit (LCRA).
LCRA IRR Rule 8(a) provides that a lending company that has been duly registered and obtained a CA must file reports/manuals, including semi-annual interim financial statements, with the SEC in accordance with a designated schedule.
Fynamics failed to file its second half 2020 interim financial statements by the February 15, 2021 deadline, pursuant to SEC Memorandum Circular No. 3, Series of 2013, which is already the fourth time that the company has failed to 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 failure to comply with the reporting requirements for loan companies, and considering that the Company has been sufficiently informed and has had the opportunity to explain its position, this department hereby concludes that the removal of the Company’s Board of Directors 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. »
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