Financial sector regulators sign MOA on FinTech oversight

The financial sector regulators signed a Memorandum of Agreement (MOA) under the auspices of the Financial Sector Forum (FSF)^[1] on the establishment of a Cooperative Oversight Framework on financial technology (FinTech) innovation.

Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said, “[t]he 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 shall cover all financial institutions performing multiple regulated activities using a single application platform and wherein such activities fall within the regulatory regime of the member-agencies.

The Framework aims to facilitate seamless regulation and supervision of Fintech companies across the financial sector leveraging on the consultative and collaborative platform under the MOA.  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/combating of financing of terrorism (AML/CFT), and consumer protection.

The MOA virtual signing rite was attended by BSP Governor Benjamin E. Diokno, Securities and Exchange Commission (SEC) Chairman Emilio B. Aquino, Insurance Commission (IC) Commissioner Dennis B. Funa, and Philippine Deposit Insurance Corporation (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.