Clients may cancel investment contract sans penalty – BSP

CEBU, Philippines – The Bangko Sentral ng Pilipinas has reminded the public that they have the right to cancel an investment contract with any financial firm it supervises without penalty.

An advisory released yesterday said that BSP-supervised financial firms should give clients at least two banking days from the signing of the contract to cancel.

“This right to cooling-off is one of the key requirements of the new BSP Financial Consumer Protection Regulation that seeks to empower clients by giving them the opportunity to reconsider their long-term investment decisions,” the central bank said.

This right, BSP added, covers investments in long-term financial instruments such as government securities, corporate bonds and Long Term Negotiable Certificate of Deposit.

The central bank, however, noted: “The client shall shoulder only reasonable amount of reasonable amount of processing and administrative fees plus any mark to market costs from the signing of the contract up to its cancellation.” — Carlo S. Lorenciana (FREEMAN)