NextGen Day

Flying Bear Lending Corp., doing business as Yopeso, Morepeso, and Rapidpeso, has had its corporate registration and lending license revoked by the Securities and Exchange Commission (SEC) for failing to disclose its online lending platforms (OLPs) to the agency.

Flying Bear Lending was found to have consistently violated SEC Memorandum Circular No. 19, series of 2019 (SEC MC 19), which addresses the disclosure requirements for advertisements of financing companies and lending companies as well as reporting of online lending platforms, in a decision made by the SEC Corporate Governance and Finance Department (CGFD) on June 8.

Lending and financing companies are required by SEC MC 19 to notify the commission of their OLPs prior to their start and operation.

Additionally, lending organizations are required to include specified information in their ads and OLPs, such as their company names, SEC registration numbers, and certificates of authority.

The memorandum circular also mandates that businesses register their OLPs as trade names or business names and disclose any OLPs they intend to create, launch, or use no later than 10 days beforehand.

Flying Bear Lending neglected to inform the commission about the activities of its OLPs Yopeso and Morepeso.

The CGFD subsequently gave Flying Bear Lending the go-ahead to remove the OLPs from Google Play and other online marketplaces.

In relation to its other OLP, RapidPeso, Flying Bear was also found to have breached SEC MC 19 in a similar manner.

The Lending Company Regulation Act of 2007 (LCRA), as well as its implementing rules and regulations, were not followed by the company, according to the CGFD (IRR).

It violated Rules 3(e) and 3(f) of the LCRA IRR by failing to start up its operations within 120 days of the date on which its CA was issued and by not allocating at least 51% of its funds for direct lending.

The order stated that “(The CGFD) holds that the number, nature, gravity, and duration of (Flying Bear Lending’s) violations, its non-compliance with this Department’s directives, and its failure to attend the hearing to present its side all showcase (the company’s) flagrant disrespect for this commission and apathy for the very nature of lending business, which is imbued with public interest.”

“Therefore, in this case, the sanction of revocation of its CA is appropriate.”

Additionally, due to Flying Bear Lending’s persistent violations of SEC MC 19 and the LCRA, the CGFD has withdrawn its certificate of organization.

The CGFD stated that the revocation of Flying Bear Lending’s primary license or certificate of incorporation is also warranted “considering the number, kind, seriousness, and duration of (Flying Bear Lending’s) infractions that require the cancellation of its CA.”

With the cancellation of Flying Bear Lending’s CA, there are now 38 finance and lending businesses with suspended licenses as a result of various SEC laws and regulations.

A total of 2,083 lending firms have had their main registrations with the SEC revoked to far for a variety of reasons, including failure to obtain the necessary secondary license—a certificate of authority to conduct business as a lending/financing company—under the LCRA.

Additionally, 81 online lending apps were ordered to stop operating by the commission last year due to a lack of authorization to act as a lending or finance organization.

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