Law Summary
Scope and Applicability
- Regulations apply to all BSP-Supervised Financial Institutions (BSFIs).
- Establishes basic principles and ethical business practices governing BSFIs' interactions with consumers.
- Sets minimum standards on:
- Disclosure and transparency of information.
- Protection of client information.
- Fair treatment of consumers.
- Provision for effective recourse mechanisms.
- Financial education and awareness.
- Emphasizes that consumer protection is an integral part of corporate governance and institutional culture of BSFIs.
Relationship with Existing Laws
- The Circular does not repeal existing government rules on disclosure, client information protection, fair treatment, recourse, and financial education.
- Existing provisions under Manuals of Regulations for Banks, Non-Bank Financial Institutions, Pawnshops, and Foreign Exchange Transactions remain effective unless inconsistent with the new Framework.
Effectivity of the Circular
- The Circular becomes effective 15 days after its publication in a newspaper of general circulation.
Transition Period for Compliance
- BSFIs are granted a one-year period to implement necessary adjustments to systems, processes, and personnel for compliance.
- Periodic Consumer Protection Assessments will commence only one year after the Circular's effectivity.
- A specific Memorandum will be issued to all Banks and BSP-supervised entities detailing the assessment procedures.