New Finance Companies Swamp a 'Worried' SEC
Byline: ANA MARIE MACUJA
Securities and Exchange Commission Chair Lilia R. Bautista admitted she was worried over the mushrooming of financing companies even as she stressed that the SEC should find ways to improve its regulations over these firms
This cropped up during the meeting the SEC had the other day with with the Finance Company Association wherein they discussed relevant issues concerning the regulation of more than 200 registered finance companies in the country.
Bautista disclosed that one of the issues tackled was a plan to set qualifications for the accreditation of external auditors for finance companies.
According to Bautista, the SEC is already reviewing its current guidelines on the accreditation of external auditors for listed companies and that it would be wise to consider the same for finance companies.
I am now worried about the mushrooming of finance companies in the country, Bautista said.
To date, there are already over 200 finance companies registered at the SEC. More finance companies are expected to register with the SEC in view of the recent circular of the SEC requiring new lending investors to register as finance companies.
Currently, the SEC is reviewing its rules on the registration of finance companies and may consider imposing stricter rules in order to avoid possible investment scams.
This developed after the SEC has allegedly received a report that a finance company has been soliciting investments from the public. …