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.