Amendments to the regulations on the approval of new officers

This is to notify all member banks of the amendments of certain provisions of the MORB with regards to the approval/confirmation of directors and officers. The revisions are in pursuant to Resolution Nos. 588 and 596A, both issued by the Monetary Board.

Among those amended are Subsections X141.4, X141.9, X143.3, X143.5, X144, X180.4 and X406.10, which are all specified in Sections 1 to 9 of Circular 758. The remaining sections, on the other hand, are reserved for MORNBFI.

As for Section 1, it specifically outlines the conditions before a director or officer can be officially confirmed. For example, only the Monetary Board has the authority to confirm the appointment or election of directors, senior vice presidents (above or with equivalent ranks) of all banks with total assets of 1.0 billion, while those with less than 1.0 billion shall be subject to confirmation of the SES Committee. However, these requirements may not be required when certain admissible conditions are met.

With regards to the appointment of a Chief Compliance Officer, Section 7 stipulates that the appointment should have a prior approval from the Monetary Board and, all pertinent documentary and identification requirements shall be submitted to the SES. Likewise due to the nature of the job, a would-be CCO must possess all the required qualifications, particularly considering fit and proper criteria such as competence, diligence, education and the like.

For more on Circular 758, please download the 16-page document from our Slideshare account.

For your information and guidance.

C758
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