Financial Regulatory Authorities in the Philippines

Philippine Securities and Exchange Commission (SEC)

The agency of the Government of the Philippines responsible for regulating the securities industry in
The Philippines. In addition to its regulatory functions, the SEC also maintains the country’s company
Register.

Its major functions include registration of securities, analysis of every registered security, and the
Evaluation of the financial condition and operations of applicants for security issue.

The functions of the SEC are defined in Section 5 of the Securities Regulation Code, and include the
Following major areas:

• Supervision over all registered business entities in the country, including suspensions and
Revocations of their registrations
• Policymaking with regard to the market in securities
• Control over and approval of security registration statements
• Power to investigate violations of securities laws and to impose sanctions for such vstatement
• Power to issue subpoenas, punish for contempt, and issue cease and desist orders in furtherance of
Its law enforcement

Insurance Commission (Komisyon ng Seguro)

To regulate and supervise the insurance and pre-need industries in accordance with the provisions of
The Insurance Code and the Pre-Need Code of the Philippines.
Legal Basis: Created and existing under and by authority of R.A. No. 275 and the Insurance Code of
1978, as amended and Republic Act 9829 “An Act Establishing the Pre-Need Code of the Philippines”.

Objectives
To promote growth and financial stability of insurance companies
To professionalize insurance services and develop insurance consciousness among the
General populace
To establish a sound national insurance market, and
To safeguard the rights and interest of the insuring people.

Functions
a. Promulgation and implementation of policies, rules and regulations governing the
operations of
Entities engaged in insurance and pre-need activities as well as with benevolent features.

b. Licensing of insurance, reinsurance companies, its intermediaries, mtual benefit

associations,
Trusts for charitable uses and pre-need companies and its intermediaries

c. Conducting insurance agent’s examinations, as well as processing of reinsurance treaties

and
Request for investments of insurance companies.

d. Examination/verification of the financial condition and methods of doing business of

entities
Engaged in insurance business, pre-need, mutual benefit associations, and trusts for charitable uses;

e. Evaluation and preparation of statistical reports, studies, researches, annual reports,

and position
Papers relative to insurance and pre-need matters.

f. Review of premium rates imposed by life and non-life companies, mutual benefit
associations;
Statistical reports of adjusters to determine compliance with established standards.

g. Adjudication of claims and complaints involving loss, damage or liability incurred by an

insurer
Under any kind of policy or contract of insurance or surety ship;
 h. Review and approval of all life and non-life policies and pre-need plans before sale to
prospective
Clients.

Bangko Sentral ng Pilipinas (Central Bank of the Philippines)

The central bank of the Philippines. It was established on July 3, 1993, pursuant to the provision of
Republic Act 7653 or the New Central Bank Act of 1993.

As prescribed by the New Central Bank Act, the main functions of the Bangko Sentral are:

1. Liquidity management, by formulating and implementing monetary policy aimed at

influencing
Money supply, consistent with its primary objective to maintain price stability,
2. Currency issue. The BSP has the exclusive power to issue the national currency. All notes
and
Coins issued by the BSP are fully guaranteed by the Government and are considered legal
Tender for all private and public debts,
3. Lender of last resort, by extending discounts, loans and advances to banking institutions
For liquidity purposes,
4. Financial supervision, by supervising banks and exercising regulatory powers over non-
bank
Institutions performing quasi-banking functions,
5. Management of foreign currency reserves, by maintaining sufficient international
reserves to
Meet any foreseeable net demands for foreign currencies in order to preserve the international stability
and convertibility of the Philippine peso,
6. Determination of exchange rate policy, by determining the exchange rate policy of the
Philippines. Currently, the BSP adheres to a market-oriented foreign exchange rate policy, and
7. Being the banker, financial advisor and official depository of the Government, its
political subdivisions and instrumentalities and GOCCs.

Philippine Deposit Insurance Corporation (PDIC)

A government-run Philippine deposit insurance fund. It was established on June 22, 1963 by Republic
Act 3591. It guarantees deposits up to P500,000.[1] Primary Functions of PDIC (Philippine Deposit
Insurance Corporation) is to protect the small investors and depositors; and to build a strong banking
Confidence.

(History) On June 22, 1963 PDIC was created through Republic Act 359, Which provided: 1.deposit
Insurance cover for banks. 2.maximum deposit insurance of P 10,000 per depositor. 3.maximum
Assessment rate of 1/12 of 1% assessable deposits per annum. 4.voluntary insurance membership with
PDIC. 5.permanent insurance fundmat 5 million pesos. 6.formation of a 3 member Board of Directors.

In 1969 membership to PDIC became compulsory for all banks through Republkc Act 6037.1970 PDIC
Started collecting maximum assessment rate of 1/18 of 1% of net assessable deposits per annum.Same
Year first payout was given to the Rural Bank of Nabua authorized by the Board ln July 6, 1970. Initially
One claim agent was assigned to handle the payout,althougn a transfer deposit scheme with the Rural
Bank of Rinconada was later arranged facilitate claims payment.

Department of Finance (DOF)

The government’s steward of sound fiscal policy. It formulates revenue policies that will ensure funding
Of critical government programs that promote welfare among our people and accelerate economic
Growth and stability.
• Formulation, institutionalization and administration of fiscal policies in coordination with other
Concerned subdivisions, agencies and instrumentalities of the government;
• Generation and management of the financial resources of government;
• Supervision of the revenue operations of all local government units;
• Review, approval and management of all public sector debt, domestic or foreign; and
• Rationalization, privatization and public accountability of corporations and assets owned,
Controlled or acquired by the government.
• Formulate goals, action plans and strategies for the Governments resource mobilization effort;
• Formulate, institutionalize and administer fiscal and tax policies;
• Supervise, direct and control the collection of government revenues;
• Act as custodian of, and manage all financial resources of Government
• Manage public debt;
• Review and coordinate policies, plans and programs of GOCCs;
• Monitor and support the implementation of policies and measures on local revenue
Administration;
• Coordinate with other government agencies on matters concerning fiscal, monetary, trade and
Other economic policies
• Investigate and arrest illegal activities such as smuggling, dumping, illegal logging, etc. affecting
National economic interest

Philippine Stock Exchange (PSE)

The national stock exchange of the Philippines. The exchange was created in 1992 from the merger of
The Manila Stock Exchangeand the Makati Stock Exchange. Including previous forms, the exchange has
Been in operation since 1927.
The main index for PSE is the PSE Composite Index (PSEi) composed of thirty (30) listed companies. The
Selection of companies in the PSEi is based on a specific set of criteria.
[Further explanation needed] There are also
Six additional sector-based indices.

Bureau of Treasury
Commit to provide our clients and stakeholders with transparent, responsive, and cost efficient Treasury
Services by continually improving our quality management systems and adopting best practices in
Governance. We shall be steadfast in pursuing prudent and proactive management of financial
resources
And debt portfolio of the Government.
1. Deliver our services with excellence, professionalism, competitiveness and with a high
degree of Ethical standards in relations with clients, stakeholders, and the general public;
2. Comply with all applicable laws, rules, and regulations; and
3. Uphold continuous improvement through disciplined exercise of financial integrity and
operational Efficiency in our functions.
4. Assist in the formulation of policies on borrowing, investment and capital market
development;
5. Formulate adequate operations guidelines for fiscal and financial policies;
6. Assist in the preparation by government agencies concerned of an annual program for
revenue And expenditure targets, borrowing levels and cash balances of National Government;
7. Maintain books of accounts of the cash transactions;
8. Manage the cash resources, collect taxes made by NG and guarantee forward cover fees
due NG, control and service its public debt, both foreign or domestic;
9. Issue, service, redeems government securities for the account of NG as may be
authorized by The President pursuant to law;
10. Administer the Securities Stabilization Fund by purchase and sale in the open market of
Government bills and bonds to increase the liquidity and stabilize the value of said securities in
Order to promote private investment in government securities;
11. Act as principal custodian of financial assets of the NG, its agencies and
instrumentalities;

12. Bond all accountable public officials and employees pursuant to the provisions of the
Public Bonding Law and issue appropriate guidelines therefore;
13. Perform such other related functions as may be assigned to it by competent authorities.