ARTA denied LYKA’s appeal for an automatic SEC registration
ARTA – The Anti-Red Tape Authority turned down the request of social media app LYKA for the automatic approval of its application for company registration with the Securities and Exchange Commission (SEC).
ARTA said in a notice of denial that the anti-red tape body denied the request of LYKA Philippines Solutions Inc. for automatic approval of its application for company registration with the SEC since the company failed to submit all the required documents.
According to a report on Philippine Star, the notice of denial was handed out on March 6, 2023.
LYKA is a social media app that was launched in the Philippines last 2020.
Earlier, the Bangko Sentral ng Pilipinas (BSP) issued a cease and desist order against LYKA and Things I Like Company Ltd. for violating Republic Act No. 11127 or The National Payment Systems Act (NPSA).
The anti-red tape body said that LYKA President Michael Bryant T. Lim filed a request to the ARTA after indicating that the SEC failed to act on its application for company registration despite the submission of its application to do business, articles of incorporation, by-laws, and the corresponding incorporation fee, among other requirements.
READ ALSO: BSP Orders LYKA To Halt Operation As Operator of Payment System
The anti-red tape body stood by the decision of the Securities and Exchange Commission that the automatic approval of company registration mandated by the Ease of Doing Business Act of 2018 didn’t apply to LYKA since the said company was under investigation.
According to a report on Manila Bulletin, LYKA Philippines Solutions Inc. failed to comply with a directive from the SEC EIPD (Enforcement and Investor Protection Department) requiring LYKA to submit proof as to how the company finances its operation.
Clearance from the SEC Enforcement and Investor Protection Department is one of the requirements for businesses engaged in the financial technology sector seeking to register with the Securities and Exchange Commission.
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