Regulatory Alerts2024-08-08
Circular No. 1199: Divestment of Equity Investments
The Bangko Sentral ng Pilipinas issued Circular No. 1199 to amend the Manual of Regulations for Banks regarding the mandatory divestment of equity investments that violate applicable laws or regulations. The directive imposes a six-month divestment timeline and establishes specific sanctions for non-compliance, including reprimands and personal fines for officers and directors. Banks are further required to submit a Board-approved divestment plan within fifteen days of notice and provide quarterly progress reports to the regulator.
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