SEC Suspends Golden Alliance Credit Corp.'s Lending License for 60 Days Over Unpaid Annual Fees
Key Takeaways
- •The SEC suspended Golden Alliance Credit Corp.'s authority to operate as a lending company for 60 days due to non-payment of required annual fees.
- •The company was found liable for three violations of the implementing rules of Republic Act No. 9474, the Lending Company Regulation Act of 2007.
- •Golden Alliance Credit was directed to pay administrative fines amounting to P110,100 and to immediately halt all lending operations during the suspension.
- •The SEC cautioned that any further violations could result in harsher penalties, including full revocation of the company's lending authority.
- •Lending companies are required under SEC rules to remit their annual fee within 45 days prior to the anniversary date of their certificate of authority.
The Securities and Exchange Commission (SEC) has suspended the authority of Golden Alliance Credit Corp. to operate as a lending company for a period of 60 days due to its failure to pay required annual fees.
In a statement issued on Monday, the corporate regulator announced that its Financing and Lending Companies Department (FLCD) had found Golden Alliance Credit liable for three violations of Rule 3(d)(ii), in relation to Rule 8(c), of the implementing rules and regulations (IRR) of Republic Act No. 9474, otherwise known as the Lending Company Regulation Act of 2007 (LCRA).
Under these rules, lending companies are required to remit their annual fee within 45 days prior to the anniversary date of the issuance of their certificate of authority.
The SEC directed Golden Alliance Credit to pay administrative fines amounting to P110,100 and to immediately cease all lending operations for the duration of the 60-day suspension.
The commission further cautioned that any additional violations of the LCRA IRR, Republic Act No. 11232 — the Revised Corporation Code — or other SEC rules could result in stiffer penalties, up to and including the revocation of the company's authority to operate as a lending company.
The Philippines' SEC is the government agency tasked with regulating the corporate sector and supervising over securities, investments, and non-bank financial institutions, including financing and lending companies. Republic Act No. 9474, enacted in 2007, established the regulatory framework for lending companies, mandating their registration with the SEC and compliance with periodic fee and reporting requirements to protect borrowers and maintain orderly financial markets. The SEC has in recent years intensified enforcement against non-compliant lending and financing companies, regularly suspending or revoking certificates of authority for violations ranging from unpaid fees to abusive collection practices, as the non-bank lending sector has expanded to serve borrowers underserved by traditional banks.
BusinessWorld reported that it was unable to reach Golden Alliance Credit for comment, as no public contact information for the company was available.
— Alexandria Grace C. Magno
