New BRP Country Manual Products – Philippines
BRP has published its latest Country Manuals Products for Philippines
| SOURCE OF CHANGES | ANSWERS |
| Law/Regulation | No |
| New Position of the Authorities | No |
| Evolution of Expert’s interpretation | Yes |
Definitions & Concepts, Regulatory Overview and Behaviour Template
The Country Manual has been reviewed to ensure that the content of all the documents remains accurate and up to date.
Material changes
In alignment with the Country Manual Private Banking (CM PB), the provision of macroeconomic information/reports as well as the provision of investment research and financial analysis documents/reports is now only permitted on an occasional basis onshore in the Philippines (at target) to avoid the creation of a permanent establishment and without the purpose of soliciting orders from a client resident in the Philippines.
With regard to execution only services, in line with the CM PB, it is now only permitted to accept unsolicited client orders via remote communication means (remote), as the activity would take place outside the Philippines and would not be subject to local laws and regulations. The CM PB therefore provides the answer “NO” (at target) and “Grey zone/YES” (remote).
It is highlighted that there is no longer a distinction made between investment advice based on a written advisory agreement and such provided without formal basis. In the CM P BT, the two situations “advice within an ongoing advisory agreement” and “advice without/outside the scope of an ongoing advisory agreement (spot advice)” are therefore treated equally. Please note, however, that there is an exception with respect to “offers” that are not considered “public offers” (i.e., no public advertising, such as publication in a newspaper, magazine or printed reading material that is distributed within the Philippines; therefore, offer materials should not be distributed publicly, but should only be distributed/sent on a one-to-one basis and to a limited number of persons). The provision of advice in this context does not trigger the “local distribution rules” and is a “current market practice” of foreign (unlicensed) service providers serving local clients. The CM P BT therefore provides the answer “Grey zone/YES” in the relevant cross-border scenarios.
However, please note that in alignment the CM PB, the provision of investment advice as well as product-related marketing activities are not permitted in the Philippines (at target). The CM P BT therefore provides the answer “NO” in the relevant onshore scenarios.
Non-material changes
Some comments and content have been slightly reworded in the CM, without introducing substantive changes to reflect the regulatory situation/current interpretation of the regulatory framework more accurately.
For more information, please contact us: info@brpsa.com
Geneva, November 25th, 2024