The Bangko Sentral ng Pilipinas (BSP) is proposing a reporting governance framework for the operators of payment systems (OPS).
In a draft circular, Regulatory Reporting Standards for Operators of Payment System, the BSP said OPS should have “relevant, accurate, timely” submission of required information according to the guidelines of the circular for the BSP assessment.
The circular, which has a feedback due date of January 29, includes a transitory provision that gives registered OPS until June 30 to establish the required reporting system as compliance to the reporting governance framework.
BSP defines OPS as a person who performs any of the following functions: maintains the platform that enables payments or fund transfers, regardless of whether the source and destination accounts are maintained with the same or different institutions; operates the system or network that enables payments or fund transfers to be made through the use of a payment instrument; and provides a system that processes payments on behalf of any person or the government.
The BSP said it will conduct an assessment of the quality of the reporting system of an OPS to “ascertain the accuracy and integrity, as well as the completeness and timeliness of their regulatory reports.”
As part of reporting governance, the board of directors and senior management are responsible for an effective reporting system and that they will establish regulatory reporting procedures as per the proposed BSP reporting standards for OPS.
“If the BSP finds significant deficiencies, the concerned OPS shall be required to submit a timebound, Board-approved action plan that shall articulate measures to address the noted deficiencies.
The failure of the Board and senior management of an OPS to implement the required corrective measures within the specified timeframes shall be a ground to subject the OPS, and its directors, responsible officers and employees, to enforcement actions,” according to the draft circular.
As policy statement, the BSP said the relevant, accurate, and timely reports are necessary for “effective oversight of the national payment system” and follows rules specified under the National Payment Systems Act (NPSA) or Republic Act No. 11127.
The BSP said it will adopt the new reporting framework to “support BSP’s determination of appropriate oversight tools, approaches, and
interventions.”
For this month, the BSP has two other OPS-related circulars for review and comments by industry players, and both have feedback due dates of January 15.
These two drafts are the Governance Policy Guidelines for Operators of a Payment System and the Adoption of the Principles for Financial Market Infrastructures.
These proposed circulars is part of the BSP’s second phase of its policy development and regulatory framework to implement the NPSA.