The Philippine Securities and Exchange Commission issued a cease and desist order against Hinance Lending Investors Corp., which operates under the names HotCash, VI Peso, and KindCash, after finding it was operating an unregistered online lending platform. The order directs the company and its owners, operators, promoters, representatives, agents, and persons acting on its behalf to immediately stop facilitating any lending activity or transaction. The SEC Financing and Lending Companies Department found that Hinance Lending failed to disclose in its business plan that it owns and operates the online lending platform Magic Peso. The SEC treated this as a breach of the disclosure and reporting requirements for financing and lending companies using online lending platforms under SEC Memorandum Circular No. 19, Series of 2019, and as a violation of SEC Memorandum Circular No. 10, Series of 2021, which imposed a moratorium on new online lending platforms effective 5 November 2021. The SEC also cited its enforcement authority under Republic Act No. 11765, the Financial Products and Services Consumer Protection Act, and framed the order as a measure to prevent fraud and harm to financial consumers.

Original source View in tracker