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  5. Functions and Responsibilities

The Financing and Lending Companies Division (FinLend) shall perform the following functions:

Monitor and enforce compliance by financing companies (FCs) and lending companies (LCs) with the Financing Company Act, Lending Company Regulation Act, Revised Corporation Code of the Philippines, Securities Regulation Code, Financial Products and Services Consumer Protection Act and the rules and regulations implemented by the Commission, as may be applicable; It shall also include the following:
  Development, acquisition, and application of SupTech or cognate capabilities in aid of shaping the compliance behavior of supervised financing and lending companies positively;
  Intelligence gathering and knowledge management of insights into compliance behavior;
  Provision of technocratic guidance to preclude inadvertent or advertent infractions;
  Preemption, identification, mitigation, and communication of systemic risks;
  Authority to revoke Certificates of Registration and of Authority of erring financing and lending companies in accordance with existing rules and to act on cognate activities pursuant to its mandate;
  Authority to issue Orders, Cease and Desist Orders, Notices, Resolutions, Memoranda and such other documents and papers as may be necessary or related to the monitoring, supervision, and enforcement of the laws, rules and regulations pertaining to financing companies and lending companies;
Provide recommendations and draft policy measures for the effective supervision of FCs and LCs, as well as:
  Conduct policy research including ‘foresight-ing’, ’thinktank-ing’ and ‘insight-ing’ in aid of crafting and implementing a roadmap for the regulated money-lending industry;
  Craft the policies geared towards the ‘effective parenting’ of supervised financing and lending companies in pursuit of financial inclusion, customer protection, and industry development for the guidance of other units as well as of the Extension Offices;
  Conduct of regulatory impact assessments (RIAs), whenever practicable;
  Take corrective actions at the policy level;
Conduct workshops, seminars and roundtable discussions related to FCs and LCs, as well as:
  Participation in various fora to promote the SEC’s strategic narrative in its role as Overseer of the Regulated Money-lending Industry and to convey key messages with proof points;
  Regulate the Money-lending Industry and convey key messages with proof points.
  Responsible in leveraging of existing relationships with external organizations or interagency entities with a view to turning them into advocates or champions for the SEC;
  Promote the use of behavioral sciences and other fields of knowledge for developing enriched educational interventions designed to influence positively existing and prospective borrowers;
Conduct workshops, seminars and roundtable discussions related to FCs and LCs, as well as:
  Craft legislative agenda, lobbying, and liaising;
  Interface with, and align with, special interest groups to advance its legislative agenda and its underpinning policy preferences;
Participate in meetings or consultations with local and international agencies related to FCs and LCs, as well as:
  Participation in meetings to impact the warp and woof of the policy thinking and paradigmatic approaches of such agencies to the regulation of financing and lending companies;
  Solicit bilateral or multilateral technical assistance, as necessary, in support of the SEC’s policies, programs, and projects;
  Include the provision of policy guidance or technical assistance, upon request, to local and international stakeholders;
Process requests for reconsideration of penalties imposed on FCs and LCs, which shall include:
  Solicitation of inputs, as necessary, from other units in the disposition of unusual or precedent-setting cases to establish policy consensus within the agency;
  Aim for the prospective application of newly-minted policies and processes in the interest of cost-effective deterrence;
  Issuance of administrative fiats (i.e., SCLs and CDOs);
  Initiation of administrative proceedings against erring financing and lending companies.