By Billy Begas
House Committee on Ways and Means chairperson Joey Salceda said that President Rodrigo Duterte is likely to sign the Financial Consumer Protection Act which will lead to a strengthened fight against illegal online lending and investment scams.
“I am told by sources in the Palace that the President is very likely to sign it this week. In any case, it lapses into law on May 7,” said Salceda, principal author of the measure.
Salceda said the measure will vest financial regulators with the powers of rule-making, surveillance and inspection, market monitoring, enforcement, and adjudication powers over financial products.
“Once enacted, the FCP Act means more powers to authorities, jail time and steeper fines for fraudsters, as well as clearer laws and regulations on investments, lending, and other financial products,” Salceda said.
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 file independent civil actions on behalf of victims of financial or investment fraud.
The measure will also impose a fine of up to P10 million against those behind investment fraud.
Salceda said the FCP Act “is a crucial balancing measure in our efforts towards financial inclusion. As more people become included in the financial system, you have a greater base of potential victims of financial fraud. So, you want tougher laws and penalties against fraudsters.”
“The next step is to write a good IRR and issuances based on the rule-making powers to be granted. In particular, I will be lobbying for an end to unjust and unfair debt collection practices to be one of the rules issued by the SEC on the matter, while we in Congress still debate proposals on the matter as well,” Salceda stressed.
