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BSP
BSP
NOTICE
On May 20, 2019, the Bangko Sentral ng Pilipinas (BSP) issued BSP Circular 1040 Series of 2019
pertaining to the revised framework on the selection of external auditors for the Bangko Sentral
Supervised Financial Institutions (BSFIs) – which includes banks, savings and loan associations, and
pawnshops, among others. This circular was the result of the Monetary Board Resolution No. 643 dated
April 25, 2019 which was geared toward a cooperative arrangement among Financial Sector
Supervisors, namely: the BSP, the Securities and Exchange Commission (SEC), the Insurance
Commission (IC), and the Philippine Deposit Insurance Corporation (PDIC) under the auspices of the
Financial Sector Forum.
Those who will be applying for the first time as well as to those who will be applying for
renewal of inclusion in the list of Selected External Auditors for BSFIs shall submit their
application to the SEC. The inclusion in the List of Selected External Auditors for BSFIs shall
be valid for five (5) years or for a shorter period prescribed by the financial sector supervisors.
The BSP reserves the right to deploy its range of supervisory enforcement actions to promote
adherence with the requirements set forth and bring about timely corrective actions. For this
purpose, the BSP may issue directives or impose sanctions on BSFIs and/or its directors/trustees
who approved the appointment of the external auditor, who/which are not in the List of
Selected External Auditors for BSFIs, and/or for non-compliance with the provisions of this
section. The BSP may likewise shorten the period of validity of inclusion of an external auditor
in the Lists of Selected External Auditors for BSFIs, suspend, or delist them based on the results
of the assessment of the quality of the audited financial statements (AFS) as well as non-
compliance with this section.
o Transitory Provisions
Our Firm – Velasco, Punzalan & Co., CPAs (Previously Velasco, Aguirre & Co., CPAs), is
one among the list of the BSP Accredited External Auditors whose accreditation would be
up to 2018 financial statements audit only. Thus, by express provision under the “Transitory
Povisions”, our accreditation is hereby extended for 1 more year – that is, up to 2019 financial
statements audit.
The full text of this article and Attachment 1 could be found here:
http://www.bsp.gov.ph/downloads/regulations/attachments/2019/c1040.pdf