THE Securities and Exchange Commission (SEC) has lifted its nearly five-year moratorium on new online lending platforms (OLPs), allowing licensed firms to launch new digital lending services starting Aug. 1 under a stricter regulatory framework.
In Memorandum Circular 20, Series of 2026, the SEC introduced new prudential disclosure and market conduct rules covering financing and lending companies that offer credit through mobile applications, websites and other digital platforms.“As we open the doors to new OLPs, we are making it clear that the SEC welcomes and promotes financial innovation but will not tolerate the proliferation of predatory and unfair lending practices,” SEC Chairman Francis Lim said in a statement.“Our goal is to foster a safe, transparent and competitive online lending environment where both legitimate businesses and Filipino consumers can thrive through necessary consumer safeguards and reporting mechanisms outlined in this new memorandum circular,” he added.Lifting the moratorium does not automatically authorize new online lending platforms, the SEC said, as only licensed financing and lending companies that comply with the new rules can operate borrower-facing platforms.The circular requires operators to disclose all websites, mobile applications and other digital channels used in their lending business. The SEC said it would suspend or delist platforms found to have violated the guidelines or other regulationsThe rules also introduce higher paid-up capital requirements for companies seeking to expand their online lending operations, with the amount depending on the number of platforms operated. Financing and lending companies will be allowed to operate up to five online lending platforms.Existing operators that plan to expand have a year from effectivity of the circular to comply with the new capital requirements.The SEC also adopted a single certificate of authority policy, under which one certificate will cover all branches and online lending platforms operated by a financing or lending company.In addition, online lending platform operators will be required to register with the Credit Information Corp. and regularly submit reports in accordance with the Credit Information System Act.NAZYLEN JOY MABANGLO
