Bank clients, investors get extra protection under new BSP rules
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.”
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.
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.
