The country’s financial sector regulators have signed a Memorandum of Agreement (MOA) under the auspices of the Financial Sector Forum (FSF) on the establishment of a Cooperative Oversight Framework on financial technology (fintech) innovation.
The FSF is a voluntary inter-agency body comprised of the Bangko Sentral ng Pilipinas (BSP), Securities and Exchange Commission (SEC), Insurance Commission (IC), and Philippine Deposit Insurance Corporation (PDIC).
BSP governor Benjamin E. Diokno said, “The institutionalization of the Cooperative Oversight Framework on FinTech innovation symbolizes our unity in diversity and reinforces the spirit of shared commitment among financial sector supervisors to espouse an enabling regulatory environment in the digital financial economy.”
The framework, which will cover all financial institutions performing multiple regulated activities using a single application platform, aims to facilitate seamless regulation and supervision of fintech companies.
“This will ensure that risks attendant to fintech activities are effectively managed without stifling innovation. The operationalization of the MOA is seen to avoid regulatory overlaps and arbitrage and promote adherence to standards set out in relation to cyber security, anti-money laundering/combatting of financing of terrorism (AML/CFT), and consumer protection,” the BSP said.
The MOA virtual signing rite was attended Diokno, SEC chairperson Emilio B. Aquino, IC commissioner Dennis B. Funa, and PDIC president and CEO Roberto B. Tan. Joining the ceremony as witnesses to the event were BSP deputy governor Chuchi Fonacier, SEC commissioner Ephyro Luis Amatong, IC deputy commissioner Erickson Balmes and PDIC vice president Maria Belinda San Jose.