Metro Manila (CNN Philippines, May 18) — President Rodrigo Duterte has signed a law providing consumers more protection from fraud committed through financial services.
Republic Act 11765 says the government must implement measures protecting the ff. rights of financial consumers:
– right to equitable and fair treatment
– right to disclosure and transparency of financial products and services
– right to protection of consumer assets against fraud and misuse
– right to data privacy and protection
– right to timely handling and redress of complaints
With this, the law lists powers possessed by financial regulators Bangko Sentral ng Pilipinas (BSP), Securities and Exchange Commission (SEC), Insurance Commission (IC), and Cooperative Development Authority (CDA):
– rulemaking
– market conduct surveillance and examination
– market monitoring
– enforcement
– consumer redress or complaints handling mechanism
– adjudication
RA 11765 also defines the duties and responsibilities of financial service providers, namely board and senior management oversight; appropriate product design and delivery; transparency, disclosure, and responsible pricing; and fair and respectful treatment of clients.
These service providers are likewise mandated to ensure privacy and protection of client data; a financial consumer protection assistance mechanism; and information security standards.
Violators of RA 11765 and laws issued in line with its implementation face one to five years imprisonment, a fine of ₱50,000 to ₱2 million, or both at the discretion of the court.
Administrative sanctions under the financial regulators’ respective charters shall also be made applicable to offending financial service providers and its directors, trustees, officers, employees or agents without prejudice to the enforcement actions and criminal sanctions specified in the Act.
For persons found guilty of investment fraud, the SEC may slap a fine of ₱50,000 to ₱10 million for each instance along with another fine not exceeding ₱10,000 for each day of continuing violation.
If profit is gained or loss is avoided as a result of this Act or investment fraud, RA 11765 says a “fine not more than three times” the concerned amount may be imposed by the financial regulator.
This is also provided that in addition to administrative sanctions that could be imposed, the financial service provider’s authority to operate in relation to a particular product or service may be suspended or cancelled by the relevant regulator.
