Law protecting financial product users now in effect
MANILA -A measure meant to protect consumers of financial products and services in a bid to boost investor confidence has already taken effect, according to the Securities and Exchange Commission (SEC).
The regulator, in a notice released on Tuesday, said the SEC rules and regulations of the Financial Products and Services Consumer Protection Act of 2022 took effect on May 14.
“It is the policy of the state to ensure that appropriate mechanisms are in place to protect the interest of consumers of financial products and services under the conditions of transparency, fair and sound market conduct, and fair, reasonable, and effective handling of financial consumer disputes, which are aligned with global best practices,” the SEC Memorandum Circular No. 5 read.
Financial products include stocks, bonds, government securities, investment contracts, options and warrants and other instruments.
The memorandum notes that the SEC, as a regulator, has the authority to instruct financial service providers to submit relevant documents, as needed.
“For purposes of market monitoring, the commission may obtain relevant data about financial products, services and markets from other government agencies, which shall be duty-bound to furnish the same,” the SEC said.
The regulator also has the power to implement punitive actions against financial service companies found to be noncompliant, according to the mentioned measure. INQ
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