The policy environment for NGOs engaged in microfinance in the Philippines is very liberal compared to other countries. NGOs have significant freedom but are responsible to register as non-profit organizations with the Securities and Exchange Commission and state their intention to engage in microfinance. They must also file annual audited financial statements. However, NGO microfinance institutions are not subject to prudential regulation or supervision by any government authority. The liberal policies allow NGOs to collect compulsory savings from borrowers and open offices anywhere, but this lack of oversight raises questions about client protection and responsible use of savings.