SEC Encouragement of Calibrated Relief Measures for Borrowers of Financing and Lending Companies
Summary
On 16 April 2026, the Securities and Exchange Commission (SEC), through a Notice approved by the SEC En Banc, announced a policy encouraging financing companies (FCs) and lending companies (LCs) to extend calibrated, capacity‑based, and sustainable relief measures to borrowers experiencing financial difficulty as a result of recent economic developments arising from the declaration of a State of National Energy Emergency.
It is the policy of the Commission to promote responsible, transparent, and consumer-centric lending practices during periods of economic disruption, while ensuring the continued stability and sustainability of the financing and lending sector.
Encouraged Relief Measures
The SEC encourages FCs and LCs to adopt relief measures that are proportionate, capacity‑based, and responsive to borrowers’ demonstrated financial distress. The encouraged relief measures are summarized below:
The Notice is non‑mandatory and is issued without prejudice to the existing rights and obligations of parties under their respective loan agreements.
All relief measures must comply with existing laws and SEC regulations, including the Truth in Lending Act (Republic Act No. 3765) and relevant SEC Memorandum Circulars on disclosure, fair debt collection practices, and interest rate and fee ceilings. Relief arrangements must be clearly disclosed, properly documented, and implemented without hidden charges, harassment, or misleading representations.
References
This Accounting Alert provides only a high‑level overview of the regulatory updates. For complete and authoritative guidance, please refer to the PDF file for full SEC Notice below.
To access related regulatory issuances, you may also visit www.sec.gov.ph for more comprehensive guidance.
