Philippines: Implemented SEC Implementing Rules and Regulations of the Financial Products and Services Consumer Protection Act (FCPA)

On 12 May 2023, the Securities and Exchange Commission (SEC) published the implementing Rules and Regulations of the Financial Products and Services Consumer Protection Act (FCPA). The implementing Rules guarantee the rights to fair treatment, clear disclosure of financial products, protection against fraud, data privacy, and timely resolution of complaints. They also outline the powers of the SEC in enforcing the FCPA. The SEC has the authority to create rules, monitor financial service providers, conduct market surveillance, and enforce actions against violations. It can also resolve consumer complaints through mediation or adjudication for claims up to PHP 10'000'000. The SEC may impose fines, disqualify personnel, suspend operations, and issue cease and desist orders. Additionally, it has the power to collect data, administer penalties, and ensure consumer redress. According to the implementing Rules, individuals must register with the Commission to act as or call themselves an investment adviser. This includes anyone advising or reporting on investment products for compensation. Advisers must ensure full transparency about products, including risks, benefits, terms, and costs. Further, they must establish a consumer assistance mechanism (FCPAM) offering free help with financial transaction concerns. This includes managing complaints, inquiries, and requests. Consumers must have access to fair and efficient complaint resolution systems. Providers are required to establish internal units to handle complaints, maintain communication channels and resolve issues within 30 days.