The Securities and Exchange Commission (SEC) has released draft guidelines for a second round of public feedback, aiming to end the current moratorium on registering new online lending platforms while tightening rules to strengthen oversight and better protect borrowers.
The proposals introduce stricter measures against unfair debt collection practices and set clear capital requirements tailored to the number of platforms a company manages. New financing companies will need a minimum paid-up capital of ₱15 million, while new lending firms must have ₱5 million. For existing operators, requirements rise based on scale: financing companies need ₱20 million for one platform, ₱60 million for three, and ₱100 million for five. Lending companies face corresponding thresholds of ₱10 million, ₱30 million, and ₱50 million. The SEC is also limiting each firm to a maximum of five platforms to ensure supervision remains effective and risks are contained.
Other key changes include a single certificate of authority covering all offices and platforms of a registered firm. Lenders will be barred from releasing funds until borrowers explicitly confirm they understand the final loan terms. Collection communications—whether done directly or through partners—must clearly state the company’s registered name and relevant details. Penalties for violations start at ₱50,000 for financing firms and ₱100,000 for lending companies on the first offense; repeated violations can lead to fines up to ₱1 million, suspension of operations, or cancellation of registration.
Interested parties may submit comments and suggestions until June 15.
The rules balance reopening the sector to legitimate players with higher barriers to entry, aiming to curb predatory practices, improve financial stability among operators, and give consumers clearer rights and protection.
