Following a series of public consultations, the Securities and Exchange Commission (SEC) has issued SEC Memorandum Circular No. 20, Series of 2026, entitled “Guidelines Prescribing Prudential, Disclosure, and Market Conduct Requirements for Financing and Lending Companies and Lifting the Moratorium on Online Lending Platforms” (Circular). The Circular formally lifts the moratorium on the establishment of new Online Lending Platforms (OLPs), effective 1 August 2026, after almost five years.
The Circular establishes a comprehensive regulatory framework governing the establishment and operation of OLPs and also confirms the prudential, disclosure, operational, and consumer protection requirements applicable to financing companies (FCs) and lending companies (LCs).
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This bulletin was prepared by Camille Angela M. Espeleta-Castillo, Partner and a member of the Firm’s Special Projects and Banking, Finance and Securities departments.