Amendments/additions to the Manual of Regulations for Non-Bank Financial Institutions

CIRCULAR NO.  255 Series of 2000 The Monetary Board, in its Resolution No. 1207 dated 21 July 2000 approved the following amendments/ additions to the Manual of Regulations for Non-Bank Financial Institutions. Section 1.Appendix Q-3 of Sections 4162.Q and 4425Q.2 is hereby amended to change the report category (from B to A-2) and frequency of submission by NBQBs of certain reports from quarterly to monthly in accordance with the attached schedule. Section 2. Section 4162N with Appendixes N-1 and N-2 is hereby added on the N Regulations to read as follows.

Sec. 4162N - Reports. Non-Bank Financial Institutions (NBFIs) without Quasi-Banking Functions (QB) but are subsidiaries/affiliates of banks and quasi-banks (NBQBs) and investment houses without QB but with trust shall submit to the appropriate supervising and examining department of the BSP the reports listed in Appendix N-1 in the forms as may be prescribed by the Deputy Governor, Supervision and Examination Sector, BSP.

Any change in, or amendment to, the articles of incorporation, by-laws or material documents required to be submitted to the BSP shall be reported by submitting copies of the amended articles of incorporation, by-laws, or material documents to the appropriate supervising and examining department of the BSP within fifteen (15) days following such change.

Sec. 4162N.1 - Categories and signatories of reports. Reports required to be submitted to the BSP are classified into Categories A-2 and B reports as indicated in the list of reports required to be submitted to the BSP in Appendix N-1.

Appendix N-2 prescribes the signatories for each report category and the requirements on signatory authorization. Reports submitted by NBFIs in computer media shall be subject to the same requirements.

A report submitted to the BSP under the signature of an officer who is not authorized in accordance with the requirements in this Subsection shall be considered as not having been submitted.

Sec. 4162N.2- Manner of filing. The submission of the reports shall be effected by filing them personally with the appropriate supervising and examining department of the BSP or with the BSP regional offices/units, or by sending them by registered mail or special delivery through private couriers unless otherwise specified in the Circular or memorandum of the BSP.

Sec. 4162N.3 - Sanctions in case of Willful delay in the submission of reports

Definition of Terms. For purposes of this subsection, the following definitions shall apply:

Report — shall refer to all written reports or statements required of an NBFI to be submitted to the BSP periodically or within a specified period.

Willful delay in the submission of reports shall refer to the failure of an NBFI to submit a report on time. Failure to submit a report on time due to fortuitous events, such as fire and other natural calamities, and public disorders including strike or lockout affecting an NBFI as defined in the Labor Code or national emergency affecting operations of NBFIs, shall not be considered as willful delay.

Fines for willful delay in the submission of reports

Reports — for purposes of implementing the fines for willful delay in submission of required reports, these reports shall be classified as follows:

Major reports shall consist of:

i.Statement of Condition or balance sheet with schedules (consolidated and by branch) including reports on published statements

ii.Statement of income and expenses (consolidated and by branch)

iii.Report on Trust/fund management operations

iv.Such other reports which may be classified/reclassified as "Major" by the head of the supervision and examination sector.

Minor reports shall consist of all reports required to be submitted to the BSP which are not included in the list of major reports.

Amount of fine — Any financial institution which shall incur willful delay in the submission of required report shall pay a fine in accordance with the following schedule:

For major reports — P300

Per business day of default until the report is filed with the Department

For minor reports — P60

Per business day of default until the report is filed with the Department

Delay or default shall start to run on the day following the last day required for the submission of reports. However, should the last day of filing fall on a non-working day in the locality where the reporting financial institution is situated, delay or default shall start to run on the day following the next working day.

For the purposes of establishing delay/default, the date of acknowledgment by the appropriate supervising and examining department of the BSP or the BSP Regional Offices appearing on the copies of such reports filed or submitted, or the date of mailing postmarked on the envelope/the date of registry/special delivery receipt, as the case may be, shall be considered as the date of filing by the NBFI.

Manner of payment or collection of fines — NBFIs shall, within fifteen (15) calendar days from receipt of the statement of account from the appropriate department of the BSP, pay the fines imposed thereon for willful delay on the submission of reports.

This Circular shall take effect immediately.

FOR THE MONETARY BOARD:

RAFAEL B. BUENAVENTURA Governor