Earlier this year, the bank moved to ease rules on foreign-exchange transactions in the country to benefit select sectors of the economy. Dean de la Paz - October 4, 2:
What is the SEC?
Its headquarters are in Mandaluyong City, Metro Manila. The major functions of the SEC include:. The main interest of the Commission is to safeguard the integrity and stability of the financial markets of the country. It has ultimate control over all types of financial organization, including BSP regulated brokers.
All regulated financial companies are obliged to follow the guidelines and instruction set out by the SEC, with no exceptions. The SEC is permitted to issue licenses and also has the power to revoke, renew, cancel, suspend, and terminate them.
It is the final decision maker when it comes to deciding whether a company is qualified to be issued with a license allowing it to operate in the Philippines. The SEC is concerned with improving the transparency and integrity of the Philippine financial markets and is able to issue regulatory guidelines and recommendations to reach this aim.
It also acts as an advisor to the Government, Congress, and other federal authorities in respect of the regulation of the securities and exchange market. Something which makes it a little different from other regulatory agencies is its absolute power over companies and individuals. And the fact it is able to request help from civil, military, or independent enforcement organizations to assist it in carrying out its regulatory duties.
It is able to approach the courts to get resolution of problems, as well as issue search and seizure notices to obtain evidence. Many experts believe the Commission has been given far too much power and that it has had a dramatic effect on regulating national financial companies. Not necessarily in a positive way. Whatever your opinion, the fact that the SEC has such strong powers, usually reserved for higher authorities, makes it a very influential figure in the financial world of the Philippines.
The role of the BSP is aimed more towards maintaining the overall financial stability of the Philippines, but it does have a role to play in the Forex industry.
It has roles and responsibilities which aim to streamline the money exchange process and other financial dealings which take place in the retail trading industry. It determines the exchange rate policy for the Philippine peso PHP against other currencies. Having a sound exchange rate policy and sufficient currency reserves is vital for the peso and allows the country to gain an international financial visibility.
Earlier this year, the bank moved to ease rules on foreign-exchange transactions in the country to benefit select sectors of the economy. Among the recently liberalized points the Monetary Board approved this month are the increase in the amount of foreign exchange Philippine residents may purchase from the banking system without supporting documentation. Also part of the recent amendments is allowing the deposit by Philippine residents of foreign exchange purchased from banks for certain underlying transactions, such as for travel abroad and payment of certain obligations to nonresidents, into their foreign currency deposit unit FCDU accounts.
The bank also limited the prohibition on the sale of foreign exchange by banks and their forex corporations for resident-to-resident transactions. The central bank said this measure will facilitate payment of Filipino individuals to their resident counterparties.
It would also allow further diversification of their investments. Prior BSP approval and registration requirements for private sector loans from FCDUs were also lifted by the central bank, to facilitate access of the private sector to bank financing. The Monetary Board also approved the increase in the amount of Philippine currency that may be brought into or out of the country from P10, to P50, This, the central bank said, intends to provide greater convenience to travelers to and from the Philippines, and allow settlement of obligations in jurisdictions outside the Philippines, where the Philippine peso is accepted as a currency of settlement.