SEC reopens online lending registrations

MANILA, Philippines – The Securities and Exchange Commission (SEC) has lifted its nearly five-year ban on new online lending platforms (OLPs), putting in place strict, disclosure and market conduct rules for financing and lending companies.

Under Memorandum Circular (MC) No. 20, Series of 2026, the SEC said the new framework promotes responsible innovation and financial inclusion while ensuring consumer protection and oversight of digital lending.

READ: SEC suspends registration of new online lenders

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The order replaces MC No. 10, Series of 2021, which imposed the ban.

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“The Commission recognizes the need to lift the moratorium imposed under MC No. 10 in order to promote responsible innovation, stimulate economic activity among financing and lending companies, and ensure that the operation of OLPs is aligned with consumer protection, market integrity, prudential objectives, financial inclusion, ease of market access and alignment with the global trend of digitalization,” the SEC said.

READ: SEC cracks down on illegal online lending platforms

The new rules require online lenders to meet higher capital budget standards, register and disclose their platforms, provide clearer loan disclosures, comply with data privacy and cybersecurity rules, and obtain borrowers’ explicit confirmation before releasing loan proceeds.

The SEC also limited each financing or lending company to five online lending platforms. /pai INQ

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