BSP issues implementing rules for Financial Consumer Protection Act

The Bangko Sentral ng Pilipinas (BSP) issued Circular No. 1160 dated 28 November 2022 to implement Republic Act No. 11765 or the Financial Products and Services Consumer Protection Act (FCPA) in line with its broader efforts to promote the welfare of financial consumers.

“The Circular is expected to bolster the BSP’s longstanding initiatives to protect the interest of consumers who entrust their funds to the institutions we supervise. This is seen to contribute significantly to the stability of the financial system,” said BSP Governor Felipe M. Medalla.

The Circular covers all financial products and services created, developed or marketed by BSP-supervised institutions (BSIs). These include, but are not limited to deposits, investments, fund transfers, trust products, loans, payments, remittances, and the broad range of financial products or services accessed and delivered through digital channels.

It requires BSIs to establish a “Consumer Protection Risk Management System” for further safeguarding of client welfare.

It also mandates BSIs to adhere to the Standards of Disclosure and Transparency to ensure that accurate information about its products and services are provided; Fair Treatment to guard against discriminatory practices; Protection of Client Data in view of the Data Privacy Act; and Effective Recourse for handling clients’ complaints.

Moreover, the Circular directs BSIs to practice responsible pricing of its products and services; provide cooling-off periods which allow BSI clients to consider costs and risks of financial products and services without pressure; and setup a 24/7 channel for reporting of fraud or misuse.

The Circular also emphasizes that BSIs are liable for violations of the FCPA by its personnel, third-party agents and service providers.

Sanctions for BSIs include fines, penalties, cease and desist orders, and administrative cases against its officers.

As the Circular emphasizes the BSIs’ responsibilities in upholding financial consumer rights, consumers are  enjoined to keep themselves informed and protected when making financial transactions.

The BSP considers consumer protection as a shared responsibility among financial regulators, the BSIs, and all financial consumers.

To read the Circular, visit:

To know more about financial consumer rights and responsibilities, and key provisions of the FCPA, visit: