The Securities and Exchange Commission (SEC) will lift the moratorium on the registration of online lending platforms starting next month, according to a report by Philstar Biz. The move follows the issuance of new guidelines prescribing prudential, disclosure and market conduct requirements for financing and lending companies.
The new regulations aim to strengthen oversight of the online lending industry, which has faced concerns over predatory practices and data privacy issues. The guidelines require lending firms to meet stricter capital adequacy standards, transparent loan terms, and fair collection practices.
The moratorium was initially imposed in 2021 to allow the SEC to review and address complaints against online lenders. With the lifting of the ban, new players can enter the market but must comply with the enhanced regulatory framework designed to protect borrowers.