Regulatory Alerts2024-09-06
Circular No. 1200: Guidelines on Compensation and Per Diem of Trustees, Officers and Employees of Non-Stock Savings and Loan Associations
The Bangko Sentral ng Pilipinas issued Circular No. 1200 to amend the Manual of Regulations for Non-Bank Financial Institutions by introducing Section 137-S, which establishes comprehensive guidelines for the compensation and per diem of trustees, officers, and employees of Non-Stock Savings and Loan Associations. The regulation mandates that boards of trustees establish sound compensation policies, limits total board compensation to ten percent of the preceding year's net income, and requires Monetary Board approval for any compensation increase exceeding ten percent annually. Furthermore, the Circular outlines specific prudential criteria for approval applications, enforcement mechanisms for non-compliance, and the Monetary Board's authority to restrict compensation in cases of financial distress or prejudicial practices.