Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
Second Regular Session

House Bill No,_ 7938

Introduced by REP. JOEY SARTE SALCEDA

AN ACT
ESTABLISHING AN OVERSEAS FILIPINO WORKER INVESTOR ADVOCATE
IN THE OVERSEAS WORKERS WELFARE ADMINISTRATION,
AND FOR OTHER PURPOSES

EXPLANATORY NOTE

Overseas Filipino Worker (OFW) remittances account regularly for 8-12 percent of Gross
Domestic Product (GDP). In 2019, the figure stood at USD 33.5 billion, or 9.3 percent of GDP.
These remittances have buoyed the urban property markets, as these are seen as tangible and
relatively safe investments for OF W finances.

Clearly, OFW remittances can be channeled towards even more productive assets. While real
property is a store of appreciating value, it is not always the most productive stream of income.
OFW remittances, if channeled correctly, can boost the country’s capital markets and
contribute more towards productive industries, while providing potentially greater returns to
OFWs and their families.

OFWs appear to be in search of more productive investments. With the emergence of the
internet, however, and with OFWs looking for more attractive returns on investment, thousands
of our migrant workers are scammed out of their hard-earned money every year.

Hard-earned remittances from OFWs should be managed better, and given their outsize
importance in keeping the ship of the state tight, the government has at least some responsibility
in providing reliable information on investments and protection from fraudulent investment
schemes.

This bill proposes that the Overseas Workers Welfare Administration (OWWA) be given the
additional mandate of providing investment counselling services and protection against fraud
for OFW-members.

Under this measure, there will be established under OWWA an Office of OFW Investor
Advocacy, who shall protect OFWs from potentially fraudulent investment schemes, help
OFW retail investors in resolving significant problems such investors may have with the SEC,
or with other regulatory agencies, provide OFWs with reliable advice on investing in safe
investments with reasonable returns, work with the Securities and Exchange Commission


(SEC) and the Bangko Sentral ng Pilipinas (BSP) in promoting financial literacy among OF Ws,
and perform other functions that will help keep OFW remittances in safe investments.

The Office will also administer an OFW investor hotline to help OFWs determine whether
certain investment propositions are safe and secure.

Combined, OFW remittances are larger than foreign direct investment inflows of the country.
OFWs as investors are a sleeping economic giant that could be awakened with proper
information and guidance. This bill, a small public investment in OFW welfare, could have
outsize economic benefits.

In view of the foregoing, the approval of this bill is urgently sought.

JOE TE SALCEDA


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
Second Regular Session

House Bill Né. 7932
Introduced by REP. JOEY SARTE SALCEDA

AN ACT
ESTABLISHING AN OVERSEAS FILIPINO WORKER INVESTOR ADVOCATE
IN THE OVERSEAS WORKERS WELFARE ADMINISTRATION,
AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled: .

SECTION 1. Title. — This Act shall be known as the “OFW Investor Protection Act.”

SEC. 2. Objectives. ~ This Act aims to protect the financial wellbeing and security of
Overseas Filipino Workers (OFWs) and assist them in transitioning from overseas employment
by providing them with free investor protection and counseling services under the Overseas
Workers Welfare Administration (OWWA).

SEC. 3. Investment Advise Services to Overseas Workers. — Section 35 of Republic Act
No. 10801 is hereby amended to read as follows:

SECTION 35. Benefits and Services to OF Ws. —

(a) Reintegration of OFWs. — The reintegration of OFWs, taking into
consideration the needs of women migrant workers, shall be one of the core
programs of the OWWA. In this regard, and for purposes of policy and
program coordination, the National Reintegration Center for OFWs created
under Republic Act No. 10022 shall be an attached office of the OWWA. It
shall be headed by an Executive Director who shall be under the supervision
of the OWWA Administrator.
To be able to sustain the viability of this program, not less than ten percent
(10%) of OWWA’s collection of contribution for the immediately
preceding year shall be allocated annually for the reintegration program.

(b) Repatriation Assistance. — Consistent with the provisions of Republic Act
No. 8042, as amended, the OWWA shall assist the Department of Foreign
Affairs in providing OFWs with services necessary to facilitate repatriation,
as may be required.

(c) Loan and Other Credit Assistance. ~The OWWA shall provide low-interest
loans to member-OFWs. It shall have the authority to hire experts in finance
or banking to assist in implementing the said loan programs.


(d) Workers Assistance and On-site Services. - The OWWA shall sustain and
maintain assistance to member-OFWs in all its overseas and regional
offices. Services shall be gender-responsive and shall include information
regarding the names, occupation/job categories and addresses of the
member-OFWs; legal assistance providing guidance and information on
protection of migrant rights, including the prevention of gender-based
violence; developing materials for the predeparture orientation seminars;
conducting psycho-social counseling services; conciliation services;
appropriate services and intervention for victims of gender-based violence,
and outreach missions, among others. The OWWA shall likewise make
competent representations with employers, agents, and host government
authorities to assist member-OFWs in obtaining relief from grievances and
work-related issues, including claims for unpaid wages, and illegal
recruitment cases among others.

(e) Social Benefits. - A member-OFW shall be covered with the following
social benefits:

(1) Death and Disability Benefits:

i, Death Benefits. — A member shall be covered with life insurance
for the duration of his or her employment contract. The coverage
shall include one hundred thousand pesos (P100,000.00) for
natural death and two hundred thousand pesos (P200,000.00) for
accidental death;

Disability and Dismemberment Benefits. — Disability and

dismemberment benefits shall be included in a member’s life

insurance policy, as provided for in the impediment schedule
contained in the OWWA Manual of Systems and Procedures.

The coverage is within the range of two thousand pesos

(P2,000.00) to fifty thousand pesos (P50,000.00);

Total Disability Benefit. — In case of total permanent disability,

a member shall be entitled to one hundred thousand pesos

(P100,000.00); and

iv. Burial Benefit. — A burial benefit of twenty thousand pesos
(P20,000.00) shall be provided in case of the member’s death.
Based on actuarial studies, the Board may increase the amount of the
abovementioned benefits.

(2) Health Care Benefits. — Within two (2) years from the effectivity of
this Act, the OWWA shall develop and implement health care
programs for the benefit of member-OFWs and their families, taking
into consideration the health care needs of women as provided for in
Republic Act No. 9710, or the Magna Carta of Women, and other
relevant laws.

(3) Education and Training Benefits. - A member, or the member's
designated beneficiary, may avail any of the following scholarship
programs, subject to a selection process and accreditation of
participating institutions:

i, Skills-for-Employment Scholarship Program. — For technical or
vocational training scholarship;

ii, Education for Development Scholarship Program. — For
baccalaureate programs; and



iii, Seafarers’ Upgrading Program. — To ensure the competitive
advantage of Filipino seafarers in meeting competency
standards, as required by the International Maritime
Organization (IMO), International Labor Organization (ILO)
conventions, treaties and agreements, sea-based members shall
be entitled to one upgrading program for every three (3)
membership contributions.

The annual scholarship lists of all these programs shall be submitted to the
Board.

(F) INVESTMENT AND ANTI-FRAUD ADVICE. - A MEMBER-OFW
AND/OR HIS/HER IMMEDIATE FAMILY MAY AVAIL OF
INVESTMENT AND ANTI-FRAUD ADVICE, REFERRAL SERVICES,
AND CONSULTATION FREE OF CHARGE FROM OFFICE OF OFW
INVESTOR ADVOCACY CREATED IN THIS ACT.

SEC. 4. Office of the OFW Investor Advocacy. ~ There is established under the Office
of the Commissioner the Office of the OFW Investor Advocacy, hereinafter referred to as the
“Office.”

In general, the head of the Office shall be the OFW Investor Advocate, who shall report
directly to the Administrator; and be appointed by the Administrator, from a list of three (3)
nominees submitted by the Chairman of the Securities and Exchange Commission (SEC), from
among individuals having experience in advocating for the interests of investors in securities
and investor protection issues, from the perspective of Overseas Filipino Workers (OFWs) and
retail investors.

The annual rate of pay for the OFW Investor Advocate shall be equal to the highest rate
of annual pay of a Deputy Administrator.

SEC. 5. Limitation on service. — An individual who serves as the Investor Advocate
may not be employed by the Commission during the two-year period ending on the date of
appointment as Investor Advocate; or during the five-year period beginning on the date on
which the person ceases to serve as the Investor Advocate.

SEC. 6. Staffing. — The Investor Advocate, after consultation with the Administrator of
the OWWA, may retain or employ independent counsel, research staff, and service staff, as the
Investor Advocate deems necessary to carry out the functions, powers, and duties of the Office,
notwithstanding relevant laws, rules, and regulations.

SEC. 7. Functions of the OFW Investor Advocate. ~The Investor Advocate shall:

1) Protect OFWs from potentially fraudulent investment schemes;

2) Assist OFW retail investors in resolving significant problems such investors may
have with the SEC, or with other regulatory agencies;

3) Provide OFWs with reliable advice on investing in safe investments with reasonable
returns;

4) Administer a hotline that OFWs may refer to for queries on the safety and veracity
of certain investment products and propositions;

5) Identify, with the advice of the SEC, potentially fraudulent activities which may
harm OFWs;


6) Proactively take measures to ensure that OFWs direct finances towards reliable

investments;

Collaborate with the SEC and the Bangko Sentral ng Pilipinas (BSP) to enhance the

financial literacy of OFWs;

Introduce OFWs to reliable financial products that could improve their financial

security;

9) Advice OFWs on forms of investment and enterprise that they could transition to
after their employment abroad; and

10) Perform such other functions as may be assigned by the Administrator, or as may
be inherent in his/her role as the state’s financial adviser for OFWs.

7

8)

SEC. 8. Access to documents. ~ The SEC and BSP shall ensure that the OFW Investor
Advocate has full access to the documents of the SEC, the BSP, and any self-regulatory
organization, as necessary to carry out the functions of the Office.

SEC. 9. Report to Congress. ~ Not later than June 30 of each year after the effectivity
of this Act, the OFW Investor Advocate shall submit to the House Committee on Overseas
Workers Affairs, the House Committee on Banks and Financial Intermediaries, the Senate
Committee on Labor, Employment and Human Resource Development, and the Senate
Committee on Banks, Financial Institutions and Currencies a report on the objectives of the
Investor Advocate for the following fiscal year, and the accomplishments of the Office during
the previous year.

Each report required shall contain full and substantive analysis and explanation,
information on steps that the Office has taken during the reporting period to improve OFW
investor services and financial welfare, and the responsiveness of the Office to OFW investor
concems; a summary of the most serious problems encountered by OFW investors during the
reporting period; recommendations for such administrative and legislative actions as may be
appropriate to resolve problems encountered by investors; and any other information, as
determined appropriate by the OFW Investor Advocate.

‘No report required under this Section may contain confidential information.

SEC. 10. Appropriation from the National Government. ~The amount needed to carry
out the initial implementation of this Act shall be charged against the current operative budget
sourced from the internal funds of the OWWA. Thereafter, such sum representing the
responsibility of the National Government for the continued operations and maintenance of the
Office shall be included in the annual General Appropriations Act (GAA).

Congress shall annually appropriate the necessary amount to meet the funding
requirement for personal services (PS) and the maintenance and other operating expenses
(MOOE) of the Office. Nothing in this Act shall prevent the National Government from
allocating funds for the operation or implementation of any of the programs or services stated
herein, including the budget for capital outlay (CO).

SEC. I1. Implementing Rules and Regulations. ~ Within ninety (90) days from the
effectivity of this Act, the OWWA Board, in consultation with the BSP and the SEC, shall
promulgate the rules and regulations implementing the provisions of this Act. The
implementing rules and regulations issued pursuant to this section shall take effect fifteen (15)
days after its publication in two (2) newspapers of general circulation.


SEC. 12. Separability Clause.—If any provision of this Act is declared unconstitutional,
the remainder of this Act or any provision not affected thereby shall remain in full force and
effect.

SEC. 13. Repealing Clause. — All other laws, decrees, executive orders, rules and
regulations inconsistent with the provisions of this Act are hereby repealed.

SEC. 14. Effectivity.— This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in two (2) newspapers of general circulation.

Approved,