Philippines: Closed consultation on Draft Implementing Rules of the Financial Products and Services Consumer Protection Act (FCPA)

On 7 February 2023, the Securities and Exchange Commission (SEC) closed its public consultation on the draft Implementing Rules and Regulations (IRR) for the Financial Products and Services Consumer Protection Act (FCPA). According to the Implementing Rules, the SEC, along with the Bangko Sentral ng Pilipinas (BSP) and the Insurance Commission (IC), will oversee all financial products and services, including digital offerings and tokenised securities. It further expands the SEC's enforcement capabilities, allowing it to impose penalties, fines, and operational suspensions on non-compliant financial service providers. Violations of the FCPA can result in imprisonment or fines, and the SEC can pursue civil actions on behalf of aggrieved consumers. Financial service providers are required to implement a Consumer Protection Risk Management System (CPRMS) and establish a Financial Consumer Protection Assistance Mechanism (FCPAM) to address consumer complaints. Additionally, providers must evaluate their offerings to ensure they meet consumer needs and maintain fair practices, including prohibiting abusive debt collection methods.