MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) is putting in place a governance framework for operators of payment systems (OPS) as it ramps up efforts to transform the country to a cash-lite from a cash-heavy economy.
The regulator has exposed the draft circular on the governance policy guidelines for OPS and major stakeholders have until Jan. 15 to submit their comments.
“This proposed circular forms part of the BSP’s phased-in development of enabling policies and regulatory frameworks pursuant to the National Payment Systems Act,” the central bank said.
The BSP has completed the first phase of the policy development plan with the issuance of fundamental regulations for payments, including the accreditation of the Philippine Payments Management Inc. (PPMI) as the payment system management body.
“Such an accreditation established the responsibilities of this industry-led body for governing retail payments,” the BSP said.
The BSP issued Circular 1049 in September last year requiring the registration of OPS, followed by Memorandum No. 2019–023 containing a more detailed set of guidelines on the registration and notification requirements for OPS.
It also issued its payment system oversight framework (PSOF) through Circular 1089 last July 7 setting out the BSP’s regulatory approach to overseeing payment systems.
The BSP is now in the second phase where it shall issue supplemental regulations anchored on the PSOF. One of these regulations is the governance policy for OPS providing the regulatory expectations on the governance arrangements and standards to be adhered to by all OPS.
The proposal also provides for the criteria for qualification and grounds for disqualifications of individuals elected or appointed as directors or officers of an OPS.
“This proposed policy is largely patterned after the existing corporate governance standards of the BSP,” the central bank said.
It also reflects the governance provisions of relevant domestic laws such as the Revised Corporation Code of the Philippines and the Code of Corporate Governance for Publicly Listed Companies, as well as the Cooperative Code of the Philippines.
Likewise, the BSP said the proposed policy is aligned with the globally recognized principles for financial market infrastructures.
The Bangko Sentral ng Pilipinas (BSP) has launched a three-year digital payments transformation roadmap, charting current initiatives and strategy in advancing an efficient, inclusive as well as safe and secure digital payments ecosystem.