SEC Revokes Certificate of Authority of Wealth and Personal Development Lending Inc.
The Securities and Exchange Commission (SEC) has taken decisive action against Wealth and Personal Development Lending Inc., revoking its certificate of authority (CA) to operate as a lending company due to repeated failure to comply with reportorial requirements and alleged involvement in illegal activities.
In addition to the revocation of its CA, the SEC has imposed an administrative fine of over P2 million against the company and its officers for the same offenses.
The SEC’s Financing and Lending Companies Division (FinLend) found that Wealth and Personal Development Lending failed to submit several reports in compliance with the Lending Company Regulation Act (LCRA) and its Implementing Rules and Regulations, as well as other guidelines issued by the SEC.
As a result, the company was ordered to pay a fine of P2 million for its repeated failure to submit reportorial requirements, plus P125,000 for its non-compliance with SEC Memorandum Circular No. 3, Series of 2022 (MC 3). Its officers were also ordered to pay P50,000 each for failing to ensure compliance with the law.
The LCRA mandates that lending companies pay an annual fee and submit various reports in a timely manner. However, records show that Wealth and Personal Development Lending had failed to make timely payments and submissions since 2019.
Furthermore, the company’s alleged involvement in illegal activities, specifically a drug buy-bust operation, was also cited as a reason for the revocation of its CA.
In addition to the failure to comply with reportorial requirements, the company also failed to submit a business plan and impact evaluation report as required under SEC Memorandum Circular No. 18, Series of 2019, and Bangko Sentral ng Pilipinas Circular No. 1133 Series of 2021.
The revocation of Wealth and Personal Development Lending’s CA underscores the SEC’s commitment to upholding regulatory standards and ensuring compliance within the lending industry.