SEC seeks transfer of lending firms’ oversight to BSP

The Securities and Exchange Commission (SEC) wants to rid itself permanently of financing and lending firms, as it seeks to transfer oversight of these companies to the Bangko Sentral ng Pilipinas.

- RICHMOND MERCURIO

“Lam ready to turn over this function to the BSP. Financing and lending companies are one of the serious headaches of the SEC,” SEC commissioner Rogelio Quevedo said.

“I have always maintained that since this is credit, it should have properly belonged to the BSP. But the law placed it with the joint regulatory ecosystem of the SEC and BSP. am ready to have the entire finance and lending department be transferred to the BSP. Probably it is better to transfer the regulation entirely to BSP because that is one big headache to the SEC,” he said.

Quevedo said he has submitted a position paper about the proposed transfer to Congress early this year.

The SEC has regulatory and supervisory authority over financing and lending companies under Republic Act 8556 (Financing Company Act of 1998) and Republic Act 9474 (Lending Company Regulation Act of 2007), as amended.

Through its Financing and Lending Companies Department (FinLend), the commission currently supervises financing and lending firms in the country.