Securities and Exchange Commission in Philippines (SEC) has issued a press release that it has stripped Robocash Finance Corp.’s (Company) authority to operate as a financing company for running several branches without the necessary license. The Corporate Governance and Finance Department (CGFD) of the SEC issued the order of revocation on 12 December 2019 after establishing that Robocash violated the Implementing Rules and Regulations of Republic Act No. 8556, or the Financing Company Act of 1998 (FCA IRR) (Order).
However, according to the information provided by the management of Robocash Finance Corp. and according to the laws of the Philippines the Order has not come into force yet and Robocash Finance Corp. is still validly and legally operating in the market. While Robocash Finance Corp. is ready to work and cooperate with the SEC to ensure full compliance with rules and regulations, the Company is of the opinion that the issued Order is too excessive and imposed penalty is too extreme and will appeal the Order by submitting a motion for reconsideration to the SEC and will take other necessary legal steps to appeal the order and fully restore the license to operate as financing company.
Although Robocash Finance Corp. is still validly operating in the market, the P2P platform Robo.cash
has decided currently to suspend investment into the loans of Robocash Finance Corp. Accordingly, the placement of new loans from the Philippine loan originator has been stopped until the final settlement of all the issues with SEC. However, it is necessary to emphasize that it is guaranteed that all commitments on the sold loans of Robocash Finance Corp. on the platform will be fulfilled. All the invested funds including the earned interest will be paid back to investors in due course set by the existing assignment agreements.
At the same time Robocash Group informs that its stake in joint venture Robocash Finance Corp. was bought out by existing shareholders of the Company on 2 November 2019 and since then Robocash Group does not control the operations of the Company. While Robocash Finance Corp. remains fully operational with existing products the decision of Robocash Group to exit from the joint venture was based on the group’s long-term objective to improve and develop its own way and build new products in the market with a wider product line including PDL and installment loans. The group has agreed to service Robocash Finance Corp. until the end of the year under the brand name Robocash and give an opportunity to the lender and investors to complete all operations with its loans.
Meanwhile, the P2P platform Robo.cash continues its operations with the rest of the integrated loan originators.