By Billy Begas
House Ways and Means Committee Chairman Joey Salceda says President Rodrigo Duterte will likely sign the Financial Consumer Protection Act, which will lead to a stronger crackdown on illegal online lending and scams. to investments.
“Sources at the Palace tell me that the President is very likely to sign him this week. In any case, it becomes law on May 7,” said Salceda, the main author of the measure.
Salceda said the measure will give financial regulators rule-making, monitoring and inspection, market surveillance, enforcement and arbitration powers over financial products.
“Once enacted, the FCP law means more powers for authorities, heavier prison sentences and fines for fraudsters, and clearer laws and regulations on investments, loans and other financial products,” said said Salceda.
It also expands the subpoena powers of the Bangko Sentral ng Pilipinas (BSP) and the Securities and Exchange Commission (SEC) over financial products and services.
Government regulators can also bring independent civil actions on behalf of victims of financial or investment fraud.
The measure will also impose a fine of up to P10 million on perpetrators of investment fraud.
Salceda said the FCP law “is a crucial balancing act in our efforts to promote financial inclusion. As more and more people are included in the financial system, you have a larger base of potential victims of financial fraud. So you want tougher laws and penalties against fraudsters.
“The next step is to draft a good IRR and emissions based regulatory powers to be granted. In particular, I will push for an end to unfair and unfair debt collection practices to be one of the rules issued by the SEC on the matter, while we in Congress are still debating proposals on the matter,” Salceda pointed out.