BSP seeks swift passage of digital era protections for financial consumers
Photo courtesy of Bangko Sentral ng Pilipinas Facebook Page
MANILA, Philippines—The Bangko Sentral ng Pilipinas (BSP) is urging Congress to treat with urgency measures to protect the interests of financial consumers amid rapid advancements in digital transactions.
In a statement, the BSP said it and other financial regulators are closely coordinating with the Senate for immediate passage of the proposed Financial Consumer Protection Act.
Other regulators supporting the legislation includedthe Securities and Exchange Commission, Insurance Commission and the Cooperative Development Authority.
“The Financial Consumer Protection Act is a timely reform amid the growing complexity of financial products and services in the country and is aligned with BSP’s commitment to promote digitalization and protect financial consumer welfare,” Governor Benjamin Diokno said.
The proposed Financial Consumer Protection Act will:
• Cover all financial products and services
• Institutionalize consumer protection standards
• Promote transparent and responsible pricing, fair and respectful treatment of clients’ privacy, and client data protection
The proposed law also gives financial regulators the authority to issue rules and regulations to:
• Ensure consumer protection
• Hold hearings on consumer complaints
• Enforce rules like restrictions on excessive or unreasonable interests, fees or charges
The measure also requires financial service providers to install monitoring systems to ensure compliance with the law and identify risks inherent in their operations.
“As the BSP promotes the digitalization of financial services, we also support the passage of the law that will provide our consumers with legal protection as they explore the opportunities and face risks associated with the evolving financial landscape,” Diokno said.
In June 2020, the House of Representatives approved on third and final reading House Bill No. 6768, or “An Act Affording More Protection to Consumers of Financial Products and Services,” which was transmitted to the Senate immediately.
Senate Bill Nos. 60, 534, 1329, 1335, 1739 and 2287 have also been filed and referred to the Senate Committee on Banks, Financial Institutions and Currencies. A subcommittee headed by Sen. Sherwin Gatchalian has been designated to deliberate on these bills.
To expedite the passage of the proposed Financial Consumer Protection Act into law, the BSP and other financial regulators are closely coordinating with the Senate Committee on Banks, Financial Institutions and Currencies and its subcommittee.
“The legislative measure empowers financial regulators to take necessary actions against financial entities performing acts that may undermine consumer welfare and provides a redress mechanism,” Diokno said. “This is seen to further strengthen the trust and confidence of the public in the financial system.”
TSB
