Regulatory responses to the current crisis
It is during this COVID-19 pandemic that all of us are experiencing an abrupt disruption in the ways we do things traditionally. The crisis pushed us out of our comfort zones. Under the old normal, some persons or entities operate under a strict regulatory regime. Government regulators used to threaten regulated persons or entities with the imposition of hefty penalties for noncompliance with regulatory issuances. It is indeed a consoling fact that many government regulators responded appropriately to the crisis. Let me walk you through some of these regulatory reliefs.
With respect to the filing of the annual income tax return, the Bureau of Internal Revenue has extended the deadline for the filing of returns and payment of tax due. Under Revenue Regulation No. 11-2020, individuals, partnerships, corporations, and other taxpayers are given up to June 14, 2020 to file and pay their annual income tax. All other taxes that fall due within the quarantine period are also given an extension.
The Bangko Sentral ng Pilipinas did its part by aggressively easing monetary policy and launching several liquidity-enhancing measures to mitigate economic fallout from COVID-19 pandemic. On March 13, 2020, the Monetary Board approved the granting of temporary regulatory and rediscounting relief measures to BSP Supervised Financial Institutions (BSFIs). The BSP recognizes that the outbreak of COVID-19 has potential significant impact on the operations of BSFIs in terms of risks related to exposures to borrowers and/or industries or businesses severely disrupted or affected by the COVID-19 as well as disruption in operations due to measures implemented to control the spread of virus such as the lockdown situation, localized work suspension, and heightened health and safety risks faced by BSFIs’ employees and customers.BSP has implemented extraordinary liquidity measures to complement the National Government’s broad-based health and fiscal programs in mitigating the impact of COVID-19. These measures include the ₱300 billion repurchase agreement with the BTr as well as launching a package of measures to support lending to micro, small, and medium enterprises. Loans granted to MSMEs shall be counted as part of banks’ compliance with reserve requirements. (Speech of BSP Governor Benjamin E. Diokno, The BSP’s Response to the Covid-19 Pandemic, https://bit.ly/2ZtKSRS)
The Securities and Exchange Commission did its part by issuing several memorandum circular, foremost of which is the IRR implementing Section 4(aa) of Republic Act No. 11469, or the Bayanihan to Heal as One Act, the President shall have the power to direct all banks, quasi-banks, financing companies, lending companies, and other financial institutions, public and private, to implement a grace period for a minimum of thirty (30) days for the payment of all loans falling due within the ECQ Period.
Prior to this crisis, the Commission on Higher Education allows the use of distance learning and online learning platforms as a primary mode of delivery to very few qualified higher education institutions (HEI) only. Since the traditional mode of delivery which is the face-to-face learning is currently prohibited due to quarantine measures, appropriate alternative learning platforms may now be utilized by HEIs (e.g., electronic and non-electronic learning methods, modules, self-directed learning activities, simulations, case-based scenarios, among others) in exchange for the required contact hours to achieve the course outcomes/program outcomes including evaluation and assessment based on the HEI’s assessment of its instructional capabilities. HEIs are allowed flexibility in modifying or reducing program requirements (e.g. number of: clinical/surgical procedures assisted/done, reports submitted, bedside procedures assisted/done, among others) in order to meet the requirements for graduation/promotion during this interim period. HEIs may use the extension of classes or summer/midterm to comply with requirements of laws covering specific professions (such as R.A. 7392or the Philippine Midwifery Act of 1992). (CHED COVID Advisory No. 6, 13 April 2020).
With the easing of regulatory policies by different government regulators, regulated persons or entities have a leeway to operate and to find ways on how to make their respective organizations crisis resilient. We hope something better is in store for us after this crisis.