The Securities and Exchange Commission has issued new rules requiring financing and lending firms to have landline numbers and fixed addresses to which they can be reached to ensure accountability and their legitimacy.

Under the new rules, the name of the company and its address must match those declared in its Articles of Incorporation for its principal address and any branches.

Financing and lending firms should also submit proof of the billing statement for their landline or telephone lines via the SEC’s E-Fast using the verified MC 28 email within 15 days from the release of the order.

Should the Company not be able to provide the proof of billing for telephone lines, an affidavit signed by the President stating that it has already applied for a landline application shall be submitted within the 15-day period, together with the proof of application.

Proof of installation shall be submitted within three days from the date of installation of the telephone line.

In cases where the firms transfer their offices or make corrections to their existing accounts, they shall follow the rule on submission of proof of landline application.

Non-submission or late submission will be penalized based on the penalties stated under FCA or LCRA.

Submission of false, inaccurate, misleading or incomplete information or documents shall be deemed non-compliance of this Order and shall be penalized in accordance with existing laws, SEC memodanda, and other relevant regulations.

Such penalties shall include, but is not limited to, suspension and revocation of the Certificate of Authority to Operate as a Financing or Lending Company.

In coming out with these rules, the SEC noted that it is mandated to carry out the state's policy to regulate the establishment of FCs and LCs to place their operation on a sound, efficient and stable condition to derive the optimum advantages from them as an additional source of credits, and to prevent and mitigate, as far as practicable, practices prejudicial to the public interest.