On Nov. 8, PHI CIC set compliance rules for submitting entities.
PHI CIC issued Implementing guidelines for the compliance of all submitting entities under the credit information systems act (CISA), to establish compliance rules for submitting entities (SEs) and submitting entities in production (SEPs).
Guidelines
Ensure that SEs are complying with CISA and its implementing rules and regulations.
Define the obligations of SEs and SEPs in relation to initial and continuing compliance.
Introduce a compliance rating system to monitor SEPs' adherence to continuing compliance obligations; implement a compliance assistance fee (CAF) for SEPs.
Initial compliance refers to SEs' compliance with CISA from registration until they become SEPs, applies to various financial institutions, entities providing credit services.
Continuing compliance refers to SEPs' ongoing compliance after completing initial compliance, and applies to SEPs providing credit facilities and collecting payments.
Define various terms related to CISA, compliance, and credit data submission.
Nov. 29, 2023 Press Release
On Nov. 29, 2023, PHI CIC issued a press release re implementing guidelines above.
CIC President and CEO Ben Joshua A. Baltazar said implementation of these guidelines and penalties are crucial to reduce systemic risk, and curbing non-compliant behavior of covered entities will safeguard the effectiveness of the credit information system.
Financial institutions undergo three stages before they are authorized to submit live credit data; registration, testing, and validation; and submission of live credit data.
In the event of non-compliance, the financial institution may be subject to corrective actions such as training, letter of compliance, and reporting to government agencies.
Document dated Nov. 29, 2023, received from PHI CIC Dec. 6, summarized Dec. 11.
Apr. 2024 Compliance Deadline Extended
On Apr. 30, 2024, PHI CIC extended the initial compliance stages per guidelines above for the compliance of all submitting entities under the Credit information systems act.
Under the guidelines, the initial compliance requirements is composed of three stages before an entity becomes a submitting entity in production (SEP) of PHI CIC.
Entities currently in stage 1 are given 15 working days from May 1, 2024 or until May 22, 2024, within which to finish stage 1 and move to stage 2 of initial compliance.
Those currently in stage 2 have 30 working days from May 1, 2024 until Jun. 13, 2024, to move to stage 3; those currently in stage 3 for at least six months will revert back to stage 2 and be given 30 working days or until Jun. 13, 2024 to complete it.
Entities that are currently in stage 3 for less than 6 months are given 15 working days from May 1, 2024 or until May 22, 2024 to complete stage 2 and move to stage 3.
The circular shall be effective immediately, on Apr. 30, 2024.
Oct. 2024 CAF Payment Deadline Extended
On Oct. 1, 2024, PHI CIC extended the deadline for CAF payment and filing of requests for reduction for an extra 30 days or until Oct. 31, 2024, to encourage compliance.
Failure to comply with the extended deadline shall render the assessed CAF as final and executory, without prejudice to the imposition of additional penalties as applicable.
