The Securities and Exchange Commission (SEC) has announced the revocation of the financing license and primary registration of Digido Finance Corp., the operator behind online lending platforms UnaPay and UnaCash.
The decision, outlined in an order dated May 9, stems from the company’s unauthorized establishment and operation of four branches without obtaining the requisite certificate of authority from the SEC.
The SEC’s Financing and Lending Companies Department (FinLenD) found that Digido was in direct violation of Section 6(A) of the Implementing Rules and Regulations of Republic Act No. 8556, also known as the Financing Company Act of 1998.
The said section strictly prohibits financing companies from establishing or operating any branch, agency, extension office, or unit without prior approval and a certificate of authority from the SEC.
The SEC said compliance with regulatory requirements is paramount to maintaining the integrity and stability of the country’s financial ecosystem.
“The establishment of physical branches without proper authorization undermines the regulatory framework designed to protect consumers and ensure fair practices within the financing industry,” the agency said.
As a result of these findings, FinLenD has officially revoked Digido’s certificate of authority to operate as a financing company, along with its primary registration.
“The SEC continues to remind all regulated entities of their obligation to comply with all relevant laws and regulations to ensure transparent and lawful operations,” it said.
