Question & AnswerQ&A (SEC MEMORANDUM CIRCULAR NO. 9, S. 2010)
The SEC derives its authority to impose penalties on lending companies under Section 9 of the Lending Company Regulation Act of 2007 (R.A. No. 9474) and Rule 8(c) of its Implementing Rules and Regulations (IRR).
The scale of penalties for lending companies is set forth in SEC Memorandum Circular No. 9, s. 2010, pursuant to the Lending Company Regulation Act of 2007 (R.A. No. 9474).
The suspension of the company’s secondary license as a lending company is generally for a period of sixty (60) days from the date of receipt of the Order of Suspension, after notice and hearing, unless otherwise provided.
Yes, administrative penalties imposed are without prejudice to the institution of criminal actions against responsible officers and directors for violation of Section 12 of R.A. No. 9474.
The SEC must provide notice and conduct a hearing before suspending the lending company's secondary license.
It took effect within fifteen (15) days after the date of the last publication in two newspapers of general circulation in the Philippines.
Resolution No. 473, s. 2010 approved the Schedule of Penalties for violations of the Lending Company Regulation Act and its IRR during the SEC meeting on October 14, 2010.
The Memorandum Circular was signed by Fe B. Barin, Chairperson of the SEC.
The SEC's authority to impose administrative penalties is pursuant to Section 9 of R.A. No. 9474.
The company may be subject to the schedule of administrative penalties set by the SEC, including possible suspension of its secondary license, aside from possible criminal charges against responsible officers and directors.