Sales and Marketing Guidelines for Financial Products

November 9, 2015BSP CIRCULAR NO. 891-15SUBJECT : Sales and Marketing Guidelines for Financial ProductsThe Monetary Board, in its Resolution No. 1811 dated 29 October 2015, approved the following guidelines governing the sales and marketing of financial products, which replaces the sales and marketing guidelines for derivatives under Appendix 26 of the Manual of Regulations for Banks (MORB) and Appendix Q-16 of the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI). SECTION 1. The contents of Appendix 26 of the MORB and Appendix Q-16 of the MORNBFI are hereby transferred to Section X661 of the MORB and Section 4661Q of the MORNBFI, respectively, and amended to read as follows:"Section X661/4661Q. Sales and Marketing Guidelines for Financial Products. —General Principles. A BSP-Supervised Financial Institution (BSFI) shall always act with honesty, fairness, and professionalism, and pursue the best interests of its clients. Due to the increasingly sophisticated products being introduced in the market, a BSFI acting as a dealer or broker shall have a clearly articulated strategy for the sale and marketing of financial products. The BSFI is...