On July 30, 2021, the Securities and Exchange Commission (“SEC”) has launched its new office for fintech innovation, the Philifintech Innovation Office (“PIO”), under the supervision of SEC’s Corporate Governance and Finance Department.
OBJECTIVES, MANDATE AND FUNCTIONS
With the flourishing fintech industry in the Philippines, the SEC has created the Philifintech Innovation Office to foster innovation and customize the fintech landscape in the Philippines.
PIO is geared to: (i) reduce gaps in consumer and investor protection balanced with financial inclusion as tempered by financial integrity and stability, through dedicated focus on regulation of the increase of unauthorized or unregulated fintech; (ii) create better-informed policies for the regulation of new and existing fintech; and (iii) capacitate the Commission with technical expertise to effectively regulate fintech and promote an innovative culture in the Commission.
PIO is mandated to: (a) serve as the first point of contact for Fintechs that are applying for registration, or existing Fintechs that have been operating or are introducing new Fintech products, in navigating the Commission’s regulatory landscape; (b) document, analyze, and understand Fintech business models and their possible impacts on the market and its participants; and (c) formulate and execute regulatory responses that temper the promotion of the growth of Fintech firms with policy geared at protecting investors and market participants through the policy development functions of the Commission.
The launching of the Philifintech Innovation Office (PIO) will further regulate the increase of unauthorized or unregulated fintech like those of the proliferating online lending applications, which practice unfair and illegal practices and activities that harm other legitimate fintech players.
The launching of the PIO is a welcome development for the industry. This continuing innovation from the SEC would further strengthen the trust and confidence of the investors. It will promote the interest and adds more protection to the fintech players. Hence, this revolutionary rationalization of the processes on fintech is geared towards the advancement of the financial technology industry in the Philippines.