FAIR TREATMENT

THE TECHNOLOGICAL ininnovations and developments happening in the financial sector continue to highlight the importance of consumer protection particularly in areas of product suitability, privacy and protection of information, among others . While the financial products and services may be designed and delivered differently in the digital era, the basic tenets of consumer protection apply.

The BSP therefore emphasizes that the consumer protection framework is integral in the way banks and other BSP supervised financial institutions manage risks in the face of innovation. In addition, the BSP ensures that the levels of protection for similarly placed financial products and services should be ensured so that there is no regulatory arbitrage that can eventually harm the consumer. Ultimately, the BSP endeavors to prevent consumer disadvantage that might affect consumer confidence and trust in the financial system which are essential in upholding financial stability, growth, efficiency and innovation.

The BSP Regulations on Financial Consumer Protection identifies the minimum consumer protection standards of conduct consistent with international standards. There are standards in the areas of disclosure and transparency, protection of client information, fair treatment, effective recourse and financial education. This ensures that BSP supervised institutions are responsive to the needs of their stakeholders and at the same time, are held against a high standard of accountability.

DISCLOSURE AND TRANSPARENCY

BSFIs must take affirmative action to ensure that their consumers have a reasonable holistic understanding of the products and services, which they may be acquiring or availing. In this context, full disclosure and utmost transparency are the critical ele- ments that empower the consumer to make informed financial decisions. This is made possible by providing the consumer with ready access to information that accurately represents the nature and structure of the product or service, its terms and conditions, as well as its fundamental benefits and risks.

PROTECTION OF CLIENT INFORMATION

Fair treatment ensures that