SEC issues Rules and Regulations of the Financial Products and Services Consumer Protection Act of 2022
On April 25, 2023, the Securities and Exchange Commission (SEC) issued SEC Memorandum Circular No. 5, Series of 2023, or the Financial Products and Services Consumer Protection Act of 2022 (SEC FCPA IRR), effective 15 days after its publication.
The SEC FCPA IRR was made to ensure protection of the interest of consumers of financial products and services. Thus, the State is mandated to implement measures to protect the rights of financial consumers.
Under Rule 6, Section 6 of the IRR, the SEC is given comprehensive powers in the execution if its duties:
- Rule Making;
- Market Surveillance and Examination;
- Market Monitoring;
- Consumer Redress or Complaints Handling Mechanism;
- Adjudication; and
- Other powers, as enumerated.
Under Rule 8, the duties and responsibilities of Financial Service Providers are enumerated. With that, a Board and Senior Management Oversight is constituted. Furthermore, their responsibilities are in furtherance of protecting the rights of financial consumers to:
- Equitable and fair treatment;
- Disclosure and transparency of financial products and services;
- Right to protection of consumer assets against fraud and misuse;
- Right to data privacy and protection; and
- Right to timely handling and redress of complaints.
The IRR also includes provisions for the liability of Financial Service Providers, filing of actions, prescription, and penalties.
The full copy of the SEC FCPA IRR may be read here.
The corresponding press release by the Commission may be read here.