Philippines to Lift Moratorium on Online Lending Platform Registration by August

MANILA, Philippines — The Securities and Exchange Commission (SEC) is lifting the moratorium on the registration of online lending platforms (OLPs) starting next month, following the issuance of new guidelines prescribing prudential, disclosure and market conduct requirements for financing and lending companies. The SEC said it would lift the OLP moratorium effective Aug. 1, allowing the disclosure and recording of new OLPs to be owned, operated, controlled or utilized by financing and lending companies. A memorandum circular imposing a moratorium on the recording of new OLPs, which also applied to existing financing and lending firms operating such platforms, was issued by the commission in November 2021. The SEC, however, recognized the need to lift the moratorium to promote responsible innovation and stimulate economic activity among financing and lending companies. The lifting of the moratorium likewise aims to 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 the lifting of the moratorium, however, should not be construed as an automatic or unconditional approval of any OLP, as all financing and lending companies, whether existing or newly incorporated, must remain subject to business plan, minimum paid-up capital, as well as other prescribed requirements. Under Memorandum Circular 20, Series of 2026, signed by SEC chairperson Francis Lim on Tuesday, the commission raised the capital requirements for financing and lending companies to improve regulatory oversight of the sector and boost consumer protection policies. Under the rules, the minimum paid-up capital for new financing and lending companies is P15 million and P5 million, respectively. The capital requirements apply uniformly across the country, and the requirement amount remains the same regardless of the main office location or the number and locations of physical branch offices. The number of OLPs that financing and lending companies may own and operate has also been capped at five to ensure effective supervision, adequate governance and manageable consumer risk exposure. Existing financing and lending companies must remove OLPs that exceed the limit. Each OLP will be determined by a distinct borrower-facing brand, name, application, or digital identity under which lending services are offered to the public.