The Bangko Sentral ng Pilipinas (“BSP”) Monetary Board, in its Resolution No. 546 dated 4 April 2019, approved the amendments to the Manual of Regulations for Non-Bank Financial Institutions (“MORNBFI”) on the election of foreign nationals as directors of quasi-banks and/or other BSP-supervised financial institutions, and the employment of foreign nationals as officers or employees of financing companies. Pursuant thereto, the BSP issued Circular No. 1038 (s. 2019) dated 22 April 2019 pertaining to the amendment to the MORNBFI on the election and employment of foreign nationals as directors and officers of NBFIs.

Implications for business in the Philippines

BSP Circular No. 1038 in effect is more liberal in that it now allows the election and hiring of foreigners as directors and officers of NBFIs to support the ease of doing business in the country and attract more investments. Additionally, it is also aimed at tapping the expertise of foreign nationals, according to BSP Deputy Governor Chuchi Fonacier. Before the circular was issued, foreigners were only allowed to be directors of financial institutions to the extent of their foreign equity.

If you have any questions or require any additional information, please contact Felix Sy or Donald Onghanseng of Insights Philippines Legal Advisors (a member of ZICO Law).

This alert is for general information only and is not a substitute for legal advice.