SEC shuts down Robocash

Published December 22, 2019, 12:00 AM

by manilabulletin_admin

By James A. Loyola

The Securities and Exchange Commission (SEC) has barred Robocash Finance Corp. from operating as a financing company for running several branches without the necessary license.

The Corporate Governance and Finance Department (CGFD) of the SEC issued an order revoking the Robocash’s certificate of authority for violating Republic Act No. 8556, or the Financing Company Act of 1998.

In the course of its monitoring procedure, the CGFD found that Robocash operated several branches without the requisite certificate of authority (CA).
The findings were validated through onsite audits last March 7 and July 5, which Robocash also confirmed during a hearing last September 20 and through various letters to the SEC.

The CGFD on November 13, 2019 also issued a formal charge against Robocash ordering the company to show cause why its CA should not be revoked for violation of the Financing Company law.

In its verified answer, Robocash admitted that it established and operated branches without the necessary CA.

The company, however, argued that it did not maliciously violate Section 6(a) of the FCA IRR by putting up branches without the necessary CA.

The CGFD found no merit in the company’s defense, saying: “It may be well to note that Respondent was able to secure 32 CAs for 32 separate branches. Thus, it is even more appalling that despite being aware of the requirement of the law, Respondent knowingly and willingly committed repeated violations thereof.”