Business

SEC terminates Robocash's license for operating branches without authority

SEC terminates Robocash's license for operating branches without authority

MANILA, Philippines — The Securities and Exchange Commission said Thursday it revoked the license of instant loan provider Robocash Finance Corp. for running several branches without the approval of authorities.

In a statement, the SEC said its Corporate Governance and Finance Department, or CGFD, found that Robocash operated several branches without securing a certificate of authority.

The company, however, argued that “it did not maliciously violate” the law by putting up branches without the necessary license — a defense that the SEC dismissed.

“The findings were validated through onsite audits on March 7, 2019 and July 5, 2019,” corporate regulators said.

“Robocash also confirmed the same during a hearing on September 20, 2019 and through various letters to the SEC,” they added.

“It is even more appalling that despite being aware of the requirement of the law, Respondent knowingly and willingly committed repeated violations thereof,” they continued.

Under the law, the SEC may suspend or revoke an erring financing company’s license after proper notice and hearing. The commission may also impose a basic fine of not less than P10,000.00 plus P100.00 for each day of continuing violation — but no more than P100,000.00 — and other sanctions within its power.

The SEC has revoked the primary registration of 2,081 lending and financing companies without the necessary CA, in an ongoing crackdown on illegal lending and financing activities.