The Securities and Exchange Commission (SEC) has lifted its nearly five-year moratorium on new online lending platforms (OLPs), replacing it with a stricter framework for financing and lending companies.
The Commission issued Memorandum Circular No. 20, Series of 2026 (MC 20) on 7 July, effective 1 August.
MC 20 applies to all financing companies (FCs) and lending companies (LCs) using digital apps or web-based systems to offer credit.
The guidelines strengthen consumer protection through tighter disclosure requirements, responsible lending practices, and closer regulatory oversight.
SEC Chairperson Francis Lim said the SEC “welcomes and promotes financial innovation but will not tolerate the proliferation of predatory and unfair lending practices.”
Lifting the moratorium doesn’t mean automatic approval.
Only FCs and LCs that meet MC 20’s requirements may operate borrower-facing platforms, and the SEC can refuse, suspend, or delist any OLP that violates the guidelines.
New Capital Requirements
The rules set tiered paid-up capital requirements based on how many OLPs a company runs.
FCs need at least PHP 15 million without an OLP, rising to PHP 100 million for five. LCs start at PHP 5 million, rising by PHP 10 million per platform to PHP 50 million for five.
No FC or LC may operate more than five OLPs.
Existing companies only need to comply if they expand operations, with one year to do so.
Those that skip the requirements can instead scale down to match their existing capital; any undisclosed OLP will be delisted.
Tighter Oversight Overall
The guidelines also introduce a single Certificate of Authority per FC or LC, replacing separate certificates per branch or app, and require OLP operators to register with the Credit Information Corporation.
MC 20 follows a string of SEC actions against unregistered platforms, including a shutdown of seven unregistered lenders in August 2025 and a warning against 22 illegal lending apps in January 2026.
Featured image: Edited by Fintech News Philippines based on an image by the Securities and Exchange Commission Philippines via Facebook.
