Question & AnswerQ&A (BSP CIRCULAR NO. 699, S. 2010)
The circular pertains to the disqualification of certain persons from becoming officers in banks and financial institutions as amended in the Manual of Regulations for Banks (MORB) and Manual of Regulations for Non-Bank Financial Institutions (MORNBFI).
Monetary Board Resolution No. 1515 dated 28 October 2010.
Spouses or relatives within the second degree of consanguinity or affinity are disqualified from holding officership positions across certain functional categories within the institution.
They are prohibited in decision making and senior management functions; treasury functions; recordkeeping and financial reporting functions; safekeeping of assets; risk management function; compliance function; and internal audit function.
Relatives are prohibited from holding these positions except for the Treasurer or Controller positions, where the disqualification applies to other officers but specifically excludes Treasurer or Controller in clause 1.
Yes, the spouse or relative within second degree of consanguinity or affinity of any person holding Manager, Cashier, or Accountant positions in a branch or extension office is disqualified from holding or being appointed to the same or equivalent positions in that same branch or extension office.
It takes effect fifteen (15) calendar days following its publication in the Official Gazette or in a newspaper of general circulation.
Chairman, President, Chief Executive Officer (CEO), Chief Operating Officer (COO), General Manager, and Chief Financial Officer (CFO) except Treasurer or Controller.
Yes, the spouse or relatives within the second degree are disqualified from holding the position of Internal Auditor or similar internal audit functions.
The concept of prohibition based on consanguinity or affinity within the second degree to avoid conflicts of interest or nepotism in key officership positions.