Bank clients, investors get extra protection under new BSP rules | Inquirer Business

Bank clients, investors get extra protection under new BSP rules

/ 02:24 AM December 01, 2022

Consumers of financial products and services will soon get extra protection as the Bangko Sentral ng Pilipinas (BSP) issued on Nov. 28 the implementing rules for the Financial Products and Services Consumer Protection Act (FCPA), which was enacted last May.

“The circular is expected to bolster the BSP’s longstanding initiatives to protect the interest of consumers who entrust their funds to the institutions we supervise,” BSP Governor Felipe Medalla said in a statement. “This is seen to contribute significantly to the stability of the financial system.”

ADVERTISEMENT

The rules spelled out under BSP Circular No. 1160 cover all financial products and services created, developed or marketed by BSP-supervised institutions (BSIs).

Broad range

These include but not limited to deposits, investments, fund transfers, trust products, loans, payments, remittances and the broad range of financial products or services accessed and delivered through digital channels.

FEATURED STORIES

The circular requires BSIs, for example, to establish a “Consumer Protection Risk Management System” for further safeguarding of client welfare.

Also, BSIs are mandated to adhere to the Standards of Disclosure and Transparency to ensure that accurate information about its products and services are provided; Fair Treatment to guard against discriminatory practices; Protection of Client Data in view of the Data Privacy Act; and Effective Recourse for handling clients’ complaints.

Further, BSIs are directed to practice responsible pricing of its products and services; provide cooling-off periods which allow BSI clients to consider costs and risks of financial products and services without pressure; and set up a 24/7 channel for reporting of fraud or misuse.

The circular also emphasizes that BSIs are liable for violations of the FCPA by its personnel, third-party agents and service providers. Sanctions for BSIs include fines, penalties, cease and desist orders and administrative cases against its officers.

—Ronnel W. Domingo
Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our daily newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

Read Next
Don't miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Bangko Sentral ng Pilipinas (BSP), banks, Investors
For feedback, complaints, or inquiries, contact us.
Your subscription could not be saved. Please try again.
Your subscription has been successful.

Curated business news

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.



© Copyright 1997-2023 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.