Amendments to the Regulations on Treasury Activities of BSP-Supervised Financial Institutions (BSFIs)

OFFICE OF THE GOVERNOR 1088 CIRCULAR NO. _______ Series of 2020 Subject: Amendments to the Regulations on Treasury Activities of BSP-Supervised Financial Institutions (BSFls) The Monetary Board, in its Resolution No. 566 dated 24 April 2020 approved the amendments to the regulations on treasury activities of BSFIs. In this regard, Section 611/611-Q of the Manual of Regulations for Banks/Manual of Regulations for Non-Bank Financial Institutions is hereby amended as follows: Section 1. Section 611/611-Q on Treasury Operations is hereby amended to read, as follows: "611/611-Q TREASURY OPERATIONS xxx The BSFI shall: a. xxx In accordance with the board's duty to articulate acceptable, and unacceptable activities, transactions and behaviors (collectively referred to as “unacceptable practices”), it must adopt a code of conduct and standards of practice that are binding on the Treasury unit, especially personnel involved in risk-taking. The code and standards should highlight and provide specific guidance on upholding market integrity and professionalism. Unacceptable practices refer to (a) practices that undermine market integrity, which include engaging in trading transactions which have the effect, or are likely to have the effect, of creating a false or misleading appearance of active trading in any security, currency or commodity, or with respect to the market for, or the price of, any security, currency or commodity (e.g., pre-arranged transactions, wash sales, painting the tape and marking the close), and (b) practices that result in the misstatement of the BSFI’s financial condition, results of operations, disclosures and prudential reports. The code and standards should likewise include safeguards to prevent conflict of interest or self-dealing in any form when allowing personnel to deal for their own account. xxx” A. Mabini St., Malate 1004 Manila, Philippines • (632) 708-7701 • www.bsp.gov.ph • [email protected]

Section 2. This Circular shall take effect fifteen (15) calendar days after its publication either in the Official Gazette or in a newspaper of general circulation. FOR THE MONETARY BOARD: Digitally signed by BSP Gov. Benjamin E. Diokno Date:2020.05.11 BENJAMIN E. DIOKNO Governor 11 May 2020