Capital Gains Tax Exemption on Principal Residence

Financial Consumer: person/entity purchasing or transacting with financial products/services.
Financial Consumer Complaint: dissatisfaction submitted expecting resolution.
Financial Products/Services: includes deposits, credit, insurance, securities, digital financial services, etc.
Financial Regulators: BSP, SEC, IC, CDA.
Financial Service Provider: entities providing financial products/services under regulators.
Investment Fraud: deceptive schemes including Ponzi, unlicensed sales, etc.
Market Conduct: practices in designing, delivering, managing products/services.
Responsible Pricing: affordable, sustainable pricing considering client needs and competition.

The Act applies to all financial products/services marketed or offered by financial service providers.

BSP, SEC, IC enforce the Act for entities under their charters.
CDA enforces it only for cooperatives offering savings/credit except insurance cooperatives and cooperative banks.

Rulemaking: set detailed standards, rules, and procedures including reasonableness of fees/interest.
Market Conduct Surveillance: on-site/off-site exams to ensure compliance.
Market Monitoring: require reports/data from providers and other agencies.
Enforcement: impose fines, suspension, cease and desist orders, restriction of excessive fees, and operational suspensions.
Consumer Redress Mechanism: mediation, conciliation before adjudication.
Adjudication: handle civil claims involving money up to P10 million with final decisions subject only to certiorari.
Other Powers: as provided or incidental to their charters.

Subject to provisions of RA 8799 and SEC rules.
Defined as persons advising on investment value or issuing reports for compensation, with specified exceptions (e.g., lawyers, insurance agents incidental to their profession).

Board Oversight: ensure compliance and risk management.
Product Design & Delivery: assess suitability, affordability, include cooling-off policies, allow loan prepayment with disclosed costs.
Transparency & Responsible Pricing: clear disclosures, pricing policies, regular updates, and marketing disclosures.
Fair Treatment: anti-discrimination, prohibition of abusive collections.
Data Privacy: compliance with Data Privacy Act; clients can review and control their data sharing.
Consumer Assistance: establish assistance units for complaints and inquiries.
Information Security: implement standards to protect client data and transactions.

Consumers must have choice of providers when a product (e.g., insurance) is required as prerequisite.

Investment fraud is unlawful; offenders face penalties under RA 8799 and administrative sanctions.

Contracts cannot lawfully waive consumers’ legal rights such as suing, information access, complaint resolution, or data protection.

Providers liable for acts or omissions of directors, employees, agents, including third-party service providers.

Claims under the Act prescribe after 5 years from transaction or discovery of deceit; 10 years max.
For insurance, apply Insurance Code periods.

Willful violations punishable by 1-5 years imprisonment and/or fines from P50,000 to P2 million.
Corporate officers responsible held liable.

Financial regulators may impose fines (up to P10 million for investment fraud), suspend/cancel operations, and impose other penalties.
Additional fines of up to three times profit gained or loss avoided possible.

Regulators can initiate civil actions on behalf of consumers; penalties added to disgorgement funds for consumer benefit.

Financial regulators must enact implementing guidelines within 1 year of effectivity.

Separability Clause: invalid provisions do not affect remainder of the Act.
Repealing Clause: repeals provisions inconsistent with the Act, specifically certain provisions of RA 7394.
Effectivity: Takes effect 15 days after publication in Official Gazette or two newspapers of general circulation.