Governance Policies

The Bank has governance policies and mechanisms in place to help fulfill its responsibilities to its stakeholders. They are subject to periodic review in order to ensure that they remain consistent with applicable regulations and industry best practice.

Manual on Good Corporate Governance

 

Manual on Good Corporate Governance

UnionBank’s Manual on Good Corporate Governance embodies leading principles and practices promoted by the Bank to ensure that it espouses a system of integrity and transparency aimed at upholding the rights of its stakeholders. The Manual is designed to comply with the regulatory standards of good governance and align itself with industry best practices and global paradigm. With the issuance by the SEC of the Code of Corporate Governance for publicly-listed companies in November 16, 2016 thru SEC Memorandum Circular No. 19 Series of 2016, the Bank’s Manual underwent a revision to ensure its alignment with the same. Periodic review is undertaken to ensure that the Manual remains relevant with respect to current regulations.

Policy on Conflict of Interest

As part of its on-going efforts to uphold equitable treatment of its shareholders and stakeholders, the Bank intensified its policies on conflict of interest and related party transactions which have long been in existence in the Bank’s Code of Conduct. The Revised Manual provides that a conflict of interest exists when the personal, business or other related interest of a director, officer or employee adversely interfere in any way, or could reasonably be perceived to adversely interfere, with that of the Bank. It also provides for the duties of Directors, officers and employees to immediately disclose any involvement in material conflict of interest and not to participate in the decision-making process relating to the transaction.

 

Related Party Transactions

It is the policy of the Bank to ensure that related party transactions are all entered into at arm’s length standard. These transactions are made and entered into substantially on the same terms and conditions as transactions with other individuals and businesses of comparable risks. Hence, they likewise go through the same process applicable to ordinary or unrelated party transactions as set forth in the Bank’s Purchasing Guidelines. The Bank has in place a Procedural Guidelines for Monitoring Related Party Transactions approved by the Board of Directors.

 

Blackout and Trading Policy
The Bank’s Trading Guidelines and Blackout Policy (Trading Guidelines) was approved by the Board of Directors on March 26, 2010. This aims to apprise and to ensure compliance by all “Covered Persons” of the Bank with their obligations under the Securities Regulation Code and other securities rules and regulations relating to the trading or dealing of the Bank’s shares. Covered Persons refer to directors, principal officers, and all other employees of the Bank who are made aware of undisclosed material non-public information, including their immediate families living in the same household.
The officers being referred to in the UBP Trading Guidelines are those holding the positions of AVP & up. Other employees falling within the definition of covered persons are those who, because of their functions, are made aware of undisclosed/non-public material information.


Part III of the Bank’s Trading Guidelines provides:
1. Any covered person who possesses any material non-public information may not trade in UBP securities from the time he or she acquired such material non-public information and until two (2) full trading days after such information has been made public.
2. A trading blackout shall be imposed beginning ten (10) trading days before, and until two (2) full trading days after the release of the quarterly earnings of UBP

 

Whistle Blowing Policy
In April 2017, the Board approved an amended Whistle Blower Policy that saw its departure from being embedded in the Code of Conduct to being a policy on its own.  The improved policy aims to provide an avenue for its employees, business partners and other stakeholders to raise any serious or sensitive concerns and guarantee that such concerns are treated seriously, appropriately and with utmost confidentiality together with an assurance that any person raising a serious concern in good faith will be protected from reprisal or retaliation.

A hotline was set up to warrant the anonymity and confidentiality of the reports whose merits will be evaluated by an investigating body, escalated to the Discipline Committee or the Compliance and Corporate Governance Office, as needed, and accorded the fitting course of action.

 

Alternative Dispute Resolution System

The Bank subscribes to the view that “an important determinant of the degree to which shareholder rights are protected is whether effective methods exist to obtain redress for grievances at a reasonable cost and without excessive delay.”1 It is the Bank’s policy to continue building harmonious relationship with its stockholders and other parties with whom it may have obligations or contract with. It thus adheres to appropriate alternative dispute resolution system for early settlement of conflicts with its stockholders and other parties, as found in its Revised Manual.

 

Remuneration Policy

The Bank’s Compensation and Remuneration Sub-Committee of the Corporate Governance Committee assists the Board by recommending and overseeing the implementation of programs for the remuneration of the members of the Board of Directors and Senior Management. Directors receive per diems for attendance in meetings of the Board and its committees in accordance with the Bank’s By-Laws but do not receive compensation for services rendered.

The Bank’s key executives and officers receive salaries, bonuses and other standard bank benefits and fringe benefit loan program, as approved by the BSP, in accordance with the performance management philosophy of the Bank based on meritocracy or pay for performance.

 

Compliance Program

The Bank has in place a Board-approved Compliance Program that adheres to external rules and regulations especially those issued by the BSP, SEC, PSE, Philippine Deposit Insurance Corporation (PDIC), Anti-Money Laundering Council (AMLC), and other regulatory agencies. The Compliance and Corporate Governance Office, the Office of the Corporate Secretary, and the Bank’s various units, are responsible for ensuring compliance with regulatory enactments, statutes or circulars, and other requirements of these regulatory agencies. The Bank’s revised Compliance Program is designed to ensure adherence not only to all laws, regulations and circulars relevant to its business, but also to the Bank’s internal policies, including its Code of Conduct, as well as to industry accepted best practices.

 

ANTI MONEY LAUNDERING GOVERNANCE AND CULTURE

The Bank’s basic principles and practices to espouse a vigilant anti-money laundering culture are anchored on (1) compliance with the laws and regulations; (2) strict adherence to the KYC process; (3) cooperation with law enforcement; (4) information dissemination and continuing education and (5) implementation of its AML risk management system. The members of the Board and Senior Management of the Bank are cognizant of and strictly observes the provisions of the Anti-Money Laundering Act (AMLA), as amended, its Revised Implementing Rules and Regulations and its own Money Laundering and Terrorist Financing Prevention Program (MLPP). To ensure that the tone from the top is cascaded to all of its employees, the Bank creates and promotes awareness by disseminating the MLPP Manual and related AML issuances. The AMLA Training program consists of: (1) Introductory course for new employees; (2) Certification program for critical branch personnel; (3) annual refresher course to all branch employees and (4) annual online learning course for all bank employees. The Anti-Money Laundering Act Committee (AMLACOM) was created to provide management oversight regarding the implementation of existing AML risk management policies and procedures of the Bank. The AMLACOM reports directly to the Corporate Governance Committee (CGC) which in turn assists the board in fulfilling its responsibilities in money laundering and terrorist financing prevention.

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Governance Reports

Annual Corporate Governance Report (ACGR)

Corporate Governance Report

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Board Governance

View our board members here

View board
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Manual on Corporate Governance

View our manual here

Read manual
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Awards & Citations

View UnionBank’s awards and citations here

View awards
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For more information, please visit theSafe Surfing Guidelinespage or call our 24-hour Customer Support at (02)8418600.
1 Make sure that the website address appearing on your browser is Union Bank of the Philippines and has a padlock symbol (🔒) beside it. If you see something different or there is no address appearing, please do not proceed and report to us immediately.

2 You can only type in your password or PIN using the virtual keyboard.

3 Keepyour device virus-free. Make sure you have an updatedanti-virus software.

4 To secure your account, we strongly advise you to avoid downloading your banking documents using a public computer




For more information, please visit theSafe Surfing Guidelinespage or call our 24-hour Customer Support at (02)8418600.
1 Make sure that the website address appearing on your browser starts with https://ebanking.unionbankph.com and a padlock symbol (🔒) beside it.If you see something different or there is no address appearing, please do not proceed and report to us immediately.

2 You can only type in your password or PIN using the virtual keyboard.

3 Keepyour device virus-free. Make sure you have an updatedanti-virus software.

4 To secure your account, we strongly advise you to avoid downloading your banking documents using a public computer




For more information, please visit theSafe Surfing Guidelinespage or call our 24-hour Customer Support at (02)8418600.
1 Make sure that the website address appearing on your browser is Union Bank of the Philippines and has a padlock symbol (🔒) beside it. If you see something different or there is no address appearing, please do not proceed and report to us immediately.

2 You can only type in your password or PIN using the virtual keyboard.

3 Keepyour device virus-free. Make sure you have an updatedanti-virus software.

4 To secure your account, we strongly advise you to avoid downloading your banking documents using a public computer




For more information, please visit theSafe Surfing Guidelinespage or call our 24-hour Customer Support at (02)8418600.
1 Make sure that the website address appearing on your browser starts with https://ebanking.unionbankph.com and a padlock symbol (🔒) beside it.If you see something different or there is no address appearing, please do not proceed and report to us immediately.

2 Keepyour device virus-free. Make sure you have an updatedanti-virus software.

3 To secure your account, we strongly advise you to avoid downloading your banking documents using a public computer




For more information, please visit theSafe Surfing Guidelinespage or call our 24-hour Customer Support at (02)8418600.
1 Make sure that the website address appearing on your browser is Union Bank of the Philippines and has a padlock symbol (🔒) beside it. If you see something different or there is no address appearing, please do not proceed and report to us immediately.

2 Keepyour device virus-free. Make sure you have an updatedanti-virus software.

3 To secure your account, we strongly advise you to avoid downloading your banking documents using a public computer




For more information, please visit theSafe Surfing Guidelinespage or call our 24-hour Customer Support at (02)8418600.
1 Make sure that the website address appearing on your browser starts with https://ebanking.unionbankph.com and a padlock symbol (🔒) beside it.If you see something different or there is no address appearing, please do not proceed and report to us immediately.

2 Keepyour device virus-free. Make sure you have an updatedanti-virus software.

3 To secure your account, we strongly advise you to avoid downloading your banking documents using a public computer




For more information, please visit theSafe Surfing Guidelinespage or call our 24-hour Customer Support at (02)8418600.
1 Make sure that the website address appearing on your browser is Union Bank of the Philippines and has a padlock symbol (🔒) beside it. If you see something different or there is no address appearing, please do not proceed and report to us immediately.

2 Keepyour device virus-free. Make sure you have an updatedanti-virus software.

3 To secure your account, we strongly advise you to avoid downloading your banking documents using a public computer




For more information, please visit theSafe Surfing Guidelinespage or call our 24-hour Customer Support at (02)8418600.