SEC Cancels Flying Bear Lending License and Corporate Registration
In a June 8, 2022 Order, the Securities and Exchange Commission (SEC) Corporate Governance and Finance Department (CGFD) found that Flying Bear Lending continuously violated SEC Memorandum Circular No. 19, series of 2019 on the Disclosure Requirements on Advertisements of Financing Companies and Lending Companies and Reporting of Online Lending Platforms (OLPs).
The Memorandum Circular requires lending and financing companies to report their OLPs to the Commission before their launch and operation. In their advertisements, lending companies must also disclose their corporate names, SEC Registration Numbers, and Certificates of Authority. It also requires companies to register their OLPs as business or trade names, and to report any OLP which companies plan to develop or operate before its launch.
The SEC found that Flying Bear failed to report the operation of its OLPs: Yopeso and Morepeso. Its other OLP, RapidPeso, was also found to have violated provisions of the SEC’s Memorandum Circular.
Additionally, the CGFD found that the company failed to comply with Republic Act No. 9474, or the Lending Company Regulation Act of 2007 (LCRA) and its implementing rules. Specifically, it failed to commence its operations within 120 days from the date of issuance of its Certificate of Authority. It also failed to use at least 51% of its funds for direct lending purposes, as required by the law and its IRR.
As a result of its violations, the SEC revoked the Certificate of Incorporation of Flying Bear Lending.
The full press release can be found here.