The Securities and Exchange Commission (SEC) has released the draft implementing rules and regulations (IRR) of the country’s financial consumer protection law.
The draft IRR of Republic Act No. 11765, or the Financial Products and Services Consumer Protection Act (FCPA) shall cover all financial products and services and financial service providers under the jurisdiction of the SEC.
These financial products and services include credit, securities, and investments, including digital financial products or services which pertain to the broad range of financial services accessed and delivered through digital channels.
“The proposed guidelines provide that securities, beyond their definition under Section 3.1 of Republic Act No. 8799, or the Securities Regulation Code, shall include tokenized securities products, or those which grew with the abstraction of key characteristics from cryptocurrency’s underlying distributed ledger technology to apply in the traditional financial sector,” the SEC said.
The draft rules also expand the enforcement actions that may be conducted by the SEC.
These include the restriction on the ability of the financial service provider to collect excessive or unreasonable interests, fees, or charges; disqualification and/or suspension of directors, trustees, officers, or employees; imposition of fines, suspension or penalties; issuance of cease and desist orders; suspension of operation; and disgorgement.