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Regulatory Updates Quarter 4 of 2022 - Quarter 1 of 2023
Securities and Exchange Commission (SEC)
● [MEMORANDUM CIRCULAR NO. 11] Rules on Sustainable and Responsible Investment Funds
This circular aims to provide the requirements and standards for becoming a Sustainable and Responsible Investing (SRI) Fund. The circular's 16 sections highlight the rules' applicability, prerequisites for becoming an SRI Fund, disclosure requirements, website disclosures, monitoring process, reportorial requirements, annual and quarterly reports, additional requirements for ESG-related investments by non-SRIs, administrative sanctions, and the rule's effectiveness.
Date Issued: January 03, 2023 Source: https://www.sec.gov.ph/mc-2022/sec-mc-no-11-series-of-2022rules-on-sustainable-and-responsible-investment-funds/
● [MEMORANDUM CIRCULAR NO. 8] Guidelines on Arbitration of Intra-Corporate Disputes for Corporations
The Commission announced the guidelines on the arbitration of intra-corporate disputes for corporations to clarify the principles for adopting Section 181 of Republic Act No. 11232, also known as the Revised Corporation Code of the Philippines ("RCC"). Based on this, these regulations were developed and put into effect by memorandum circular no. 8. This Circular is divided into 21 sections that cover general provisions, the composition of the arbitral tribunal and appointment process, disclosures by and challenges to arbitrators, and other conditions like when the exemption will be granted, the applicability of other rules, the clause's separability, and the circular's effectiveness.
Date Issued: September 19, 2022
Governance Commission for GOCCs
● [MEMORANDUM CIRCULAR NO. 2023-01] Performance Evaluation System (PES) for the GOCC Sector
This circular aims to ensure a transparent and responsive GOCC sector for the Filipino people by using the Performance Evaluation System (PES). The Performance Scorecard will evaluate the performance of GOCC and determine whether they will be granted benefits such as Performance-Based Bonus (PBB) and Performance-Based Incentives (PBl). Appointive Directors being eligible for reappointment, and whether GOCC should be reorganized, merged, streamlined, abolished, or privatized.
Date Issued: January 19, 2023
Bangko Sentral ng Pilipinas (BSP)
● [CIRCULAR NO. 1160] Regulations on Financial Consumer Protection to Implement Republic Act No. 11765, otherwise known as the "Financial Products and Services Consumer Protection Act"
The FCP Framework, which applies to all financial products or services, created, developed, provided, or marketed by institutions under the supervision of the Bangko Sentral-Supervised Institutions (BSls), has been modified throughout Part Ten of the Manual of Regulations for Banks (MORB) and Manual of Regulations for Nonbank Financial Institutions (MORN BFI). In support of this, BSIs are obliged to establish a Financial Consumer Protection Assistance Mechanism (FCPAM), which serves as an effective internal complaints-handling unit, and a Consumer Protection Risk Management System (CPRMS) integrated into their enterprise-wide risk management processes and risk governance structure. The Senior Management of BSls and the Board of Directors (Board) should establish the tools to identify, assess, monitor, and mitigate Financial Consumer Protection (FCP) risks inherent in their activities in compliance with the Standards and all other relevant laws, rules, and regulations.
Date Issued: November 28, 2022
