The Bangko Sentral ng Pilipinas announced a new risk‑based framework to evaluate financial institutions’ ability to protect consumer rights under the Financial Products and Services Consumer Protection Act.
The Financial Consumer Protection Risk‑and‑Impact Supervisory Model, or FCPRISM, will be introduced for banks beginning next year.
FCPRISM provides a holistic, forward‑looking assessment of an institution’s capacity to safeguard consumer rights and deliver fair outcomes consistently and sustainably.
Supervisory intensity will be linked to each institution’s consumer impact and protection risk profile, allowing the regulator to allocate resources efficiently; institutions with greater potential for consumer harm will receive closer oversight.
The model also supports consolidated supervision, evaluating impact and risks on a group‑wide basis, while its principles apply uniformly to all supervised institutions regardless of size.
The framework rests on three core elements: the institution’s consumer impact, its risk profile, and the corresponding level of supervisory engagement.
Consumer impact measures the potential scale, reach, and severity of harm to consumers, public confidence, and the stability of financial services resulting from material failures in conduct, operations, or controls.
Risk profiling examines an institution’s sustained ability to protect consumer rights through risk management in retail activities, governance, compliance, internal audit, structural complexity, consumer base, and institutional assurance.
These assessments combine to produce an Overall Consumer Protection Stance on a four‑point scale: Consumer‑Centric, Consumer‑Attentive, Consumer‑Risk Exposed, and Consumer‑Harm Evident.
The required level of supervisory engagement—covering reporting, meetings, on‑site examinations, periodic risk assessments, and complaints‑based surveillance—will be calibrated to impact ratings and risk profiles, determining the frequency and combination of supervisory activities.
