THE Bangko Sentral ng Pilipinas (BSP) issued a statement on Wednesday, commending the enactment of the Financial Products and Services Consumer Protection Act (FCPA).
The BSP said the new law is expected to “further strengthen public trust and confidence in the financial system.”
“The FCPA, as one of the legislative priorities of the BSP, is geared toward the effective regulation of the financial industry by strengthening the role of financial regulators in consumer protection,” BSP Governor Benjamin Diokno said.
The FCPA allows financial regulators to take necessary steps against financial service providers from performing acts that are disadvantageous to consumer welfare. The measure is also expected to provide consumers with a redress mechanism, while ensuring equitable treatment, transparency and data privacy.
The FCPA covers all financial products and services offered by any financial service provider, including those accessed and delivered through digital channels.
“The new law institutionalizes consumer protection, enables adjudication of complaints, promotes transparent and reasonable pricing, authorizes financial regulators to carry out enforcement actions, and fosters fair treatment of consumers while protecting their data. FCPA also has penal provisions for violations of the Act,” the BSP said.
Earlier this week, the BSP also expressed its support for the issuance of the executive order on electronic payment for government transactions, saying this would help generate savings and reduce corruption in public transactions.
In a separate statement, the central bank also lauded the issuance by President Rodrigo Roa Duterte of Executive Order (EO) 170 on the “Adoption of Digital Payments for Government Disbursements and Collections.”
The EO mandates all departments, agencies, and instrumentalities of the government, including state universities and colleges and government-owned or -controlled corporations, and enjoins local government units to utilize digital channels in the disbursement and collection of payments.