The financial sector regulators, under the auspices of the Financial Sector Forum (FSF), signed a Memorandum of Understanding (MOU) to establish a Supervisory College for financial conglomerate supervision.
In 2020, the International Monetary Fund recommended the implementation of a multilateral agreement among FSF member agencies on the establishment of a Supervisory College to agree on the approach of group level risk assessment for financial conglomerates.
The Bangko Sentral ng Pilipinas (BSP) Governor and Chairman of the FSF, Governor Benjamin E. Diokno said that the FSF “recognized the establishment of a Supervisory College as an important regulatory platform in achieving effective and efficient supervision of financial conglomerates and, thus, we agree to support a clear process for coordinating various roles and responsibilities of the FSF with clearly delineated responsibility.”
The MOU shall govern the establishment of an inter-agency cross-sectoral Supervisory College which shall serve as the forum, to facilitate cooperation and coordination between and among the FSF member agencies specifically, for the supervision of financial conglomerates in the Philippines.
The MOU virtual signing ceremony was also attended by Securities and Exchange Commission (SEC) Chairperson Emilio B. Aquino, Insurance Commission (IC) Commissioner Dennis B. Funa, and Philippine Deposit Insurance Corporation (PDIC) Senior Vice President Sandra A. Diaz. Joining the ceremony as witnesses in the signing of the MOU were BSP Deputy Governor Chuchi G. Fonacier, SEC Commissioner Ephyro Luis B. Amatong, IC Deputy Insurance Commissioner Ferdinand George A. Florendo, and PDIC OIC-Examination and Resolution Sector Eden J. Dizon.