TA-6924 REG: Southeast Asia Public Management, Financial Sector, and Trade Policy Facility (Phase II) - PIRP-N1-F National Accounting Firm_PIRP-N1-F (56047-001)

TA-6924 REG: Southeast Asia Public Management, Financial Sector, and Trade Policy Facility (Phase II) - PIRP-N1-F National Accounting Firm_PIRP-N1-F (56047-001)

Date Published: 18-Jun-2024

Deadline of Submitting EOI: 09-Jul-2024 04:00 PM Manila local time

SELECTION PROFILE

Consultant Type: Firm

Selection Method: Simplified Consultants' Qualifications Selection (SCQS)

Selection Title: Southeast Asia Public Management, Financial Sector, and Trade Policy Facility (Phase II)

Package Number: PIRP-N1-F

Package Name: National Accounting Firm_PIRP-N1-F

Engagement Period: 9MONTH

Consulting Services Budget: USD 180,000

Source: National

Technical Proposal: Single-Stage Proposal (SSP)

Approval Number: 6924

Approval Date: 10-Jun-2022

ADDITIONAL INFORMATION

Country of assignment: Philippines

Country of eligibility for national consultants: Same as country of assignment

TERMS OF REFERENCE

Primary Expertise: accounting

Objective and Purpose of the Assignment

1. The Government of the Philippines is committed to nurturing real and meaningful change for its people. As the country’s primary regulator of insurance companies, the Insurance Commission (IC) has the critical role of promulgating rules and regulations to protect the insured public and promote the insurance industry's growth and stability. Given this pivotal role, the IC must significantly enhance its capabilities and policies by following global best practices and international standards. In 2017, the International Accounting Standards Board (IASB) issued the International Financial Reporting Standard 17 Insurance Contracts (IFRS 17), locally adopted as PFRS 17. The new insurance accounting standard aims to present insurance companies' actual financial condition and enhance the comparability of their financial information. 2. Recognizing the importance of PFRS 17 in its policymaking process, the IC have issued a number of circulars to prepare the industry for the implementation of PFRS 17. The IC now plans to undertake a phased approach to the PFRS 17 adoption based on the complexity of the regulated entities and is preparing its internal resources to be able undertake effective regulatory and supervisory activity in relation to PFRS 17 adoption and implementation. The intended activity under the technical assistance will allow the IC to update its regulatory framework based on an internationally recognized and adopted reporting standard. This technical assistance assignment will be supported by the Regional Transactional Technical Assistance which aims to support programs and projects that create an enabling environment for capital market development, enhance financial sector resilience, increase access to finance, and strengthen climate finance for mitigation and adaptation to address climate change. This technical assistance assignment will contribute to expected reforms in subprogram 1 of ADB’s proposed insurance sector policy-based lending to the Department of Finance in 2025. The IC’s Financial Examination Group (FEG), headed by its Deputy Insurance Commissioner, will be responsible for implementing the PFRS 17 Regulatory Framework technical assistance. 3. The following are the objectives of the PFRS 17 Regulatory Framework technical assistance: (i) Establish the PFRS 17 work plan, including the development of the PFRS 17 road map and framework, appropriate for the IC’s needs as the regulator of life and nonlife insurance companies, mutual benefit associations (MBAs), health maintenance organizations (HMOs), and preneed companies (hereinafter collectively referred to as the “IC-regulated entities”); (ii) Undertake a gap analysis of existing financial reporting framework and IC regulatory guidelines and circular issuances in relation to the adoption of the PFRS 17; (iii) Prepare the necessary guidelines and circulars to support the implementation of PFRS 17 and provide detailed recommendations on the phased approach according to the complexity of IC regulated entities; (iv) Prepare the PFRS 17 supervisory guidelines for financial examination audits on IC regulated entities; and (v) Undertake a comprehensive capacity building exercise for IC personnel on PFRS 17, in accordance to their regulatory and supervisory mandates.