The Philippines Securities and Exchange Commission (SEC) has suspended Jia Financing’s certificate of authority to operate as a financing company for 60 days due to the unauthorised operation of a website and failure to disclose new loan products and services.

In an order dated 10 July, the SEC’s Financing and Lending Companies Division (FinLend) directed Jia Financing to take down its website, jia.ph, citing a breach of SEC Memorandum Circular No. 10, Series of 2021 (MC 10), which introduced a moratorium on new online lending platforms effective 5 November 2021.

MC 10 defines online lending platforms (OLPs) as mobile applications, websites, and other fintech-enabled systems that provide access to lending and financing products.

FinLend noted that although Jia Financing had submitted a business plan, it did not disclose the intention to operate a website or to offer loans ranging from US$50,000 to US$200,000 per client.

This omission was found to be in violation of SEC Memorandum Circular No. 3, Series of 2022 (MC 3), which requires lending and financing companies to declare their loan products, services, and applicable pricing parameters.

Non-compliance with these circulars constitutes a breach of the implementing rules and regulations of Republic Act No. 8556, or the Financing Company Act.

“The non-disclosure of these material changes in its operations warrants the suspension of its certificate of authority,”

the SEC stated in its order.

In addition to the suspension, FinLend imposed a penalty of PHP10,000 on the company and ordered the removal of its website.

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