Question & AnswerQ&A (BSP CIRCULAR NO. 857)
The Financial Consumer Protection Framework was approved by the Monetary Board through Resolution No. 691 dated April 30, 2014, and Resolution No. 831 dated May 22, 2014.
It applies to the Manual of Regulations for Banks, Manual of Regulations for Non-Bank Financial Institutions, Manual of Regulations for Pawnshops, and Manual of Regulations for Foreign Exchange Transactions with specific parts amended or added as per the circular.
All BSP-Supervised Financial Institutions (BSFIs) are covered by the regulations.
The key areas include disclosure and transparency, protection of client information, fair treatment, effective recourse, and financial education.
The circular does not repeal existing rules or regulations of the National Government on disclosure, transparency, client information protection, fair treatment, effective recourse, and financial education, unless inconsistent with the new framework.
The circular took effect fifteen (15) days after its publication in a newspaper of general circulation.
Yes, there is a one-year transition period for BSFIs to introduce and adjust systems, processes, and personnel to comply with the regulations.
Financial consumer protection is underscored as a fundamental part of BSFI's corporate governance and culture, implying that it must be integrated into the institution's overall management and operational philosophy.
The periodic Consumer Protection Assessment will commence one year after the effectivity of the circular.