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SECTION 1
Government Oversight on FX Derivatives Activities of Non-Bank Government Entities
SECTION 1. Government Oversight on FX Derivatives Activities of Non-Bank Government Entities.
To ensure efficient and judicious utilization of government resources, and subject to existing laws, the DOF shall oversee all FX derivatives activities of all non-bank government entities, including government-owned or -controlled corporations (GOCC) such as, but not limited to, the Government Service Insurance System, Social Security System, Home Development Mutual Fund, and Philippine Health Insurance Corporation, as well as other government entities not regulated by the BSP (hereafter, "Covered Entities").
SECTION 2
Approval of Investment Governance Frameworks
SECTION 2. Approval of Investment Governance Frameworks.
All Covered Entities shall formulate their respective Investment Governance Frameworks, to be approved by the Board of Directors or Trustees, or the Head of Agency, as the case may be, covering, at the minimum, the following areas: (i) risk management; (ii) qualifications or treasury professionals; (iii) operations; (iv) controls; and (v) accounting and reporting procedures. All Investment Governance Frameworks shall be submitted to the DOF for approval.
The Secretary of Finance may disapprove or defer approval of Investment Governance Frameworks on the ground of non-compliance with the requirements under the Implementing Guidelines to be issued under this Order, provided that the Covered Entity concerned shall be given an adequate opportunity to comply, and/or to address the concerns relative to its submission.
SECTION 3
Quarterly Reports
SECTION 3. Quarterly Reports.
Covered Entities shall submit to the DOF at the end of every quarter, a report on FX derivatives outstanding, a mark-to-market valuation report, if applicable, and such other reports as may be required under the implementing Guidelines to be formulated pursuant to this Order. To evaluate and analyze the impacts of such FX derivatives transactions on the financial exposure of the government, such reports shall be included in the GOCC's Liabilities and Processing Tool of the DOF, as may be appropriate.
SECTION 4
Implementing Guidelines
SECTION 4. Implementing Guidelines.
Within sixty (60) days from the effectivity of this Order, the Secretary of Finance shall promulgate Implementing Guidelines, which shall include, among others, the content of the Investment Governance Frameworks of Covered Entities.
SECTION 5
Transitory Provision
SECTION 5. Transitory Provision.
Covered Entities that have executed FX derivatives transactions prior to the issuance of this Order are given forty-five (450 days from the issuance of the Implementing Guidelines to submit to the DOF their respective Investment Governance Frameworks, as well as the required reports on FX derivatives outstanding under Section 3 of this Order.
SECTION 6
Separability
SECTION 6. Separability.
If any part or provision of this Order is declared invalid or unconstitutional, the other provisions not affected thereby shall remain invalid and subsisting.
SECTION 7
Repeal
SECTION 7. Repeal.
All orders, rules, regulations and other issuances or parts thereof which are inconsistent with this Order are hereby revoked, amended or modified accordingly.
SECTION 8
Effectivity
SECTION 8.
Effectivity.
This Order shall take effect immediately after its publication in the Official gazette or in a newspaper of general circulation.
Done in the City of Manila, this 24
th
day of May, in the year of Our Lord, Two Thousand and Twenty-Two.
(SGD.)
RODRIGO ROA DUTERTE
By the President:
(SGD.)
SALVADOR C. MEDIALDEA
Executive Secretary