MORNBFI Vol. 1 - Planters Development Bank

§§ 4401Q - 4403Q11.12.31PART FOURTRUST, OTHER FIDUCIARY BUSINESSAND INVESTMENT MANAGEMENT ACTIVITIESSection 4401Q Statement of PrinciplesThe cardinal principle common to all trust andother fiduciary relationships is fidelity.Policies predicated upon this principle aredirected towards confidentiality, scrupulouscare, safety and prudent management ofproperty including reasonable probability ofincome with proper accounting andappropriate reporting thereon. Practices aredesigned in accordance with the basicstandards for trust, other fiduciary andinvestment management accounts (IMAs) inAppendix Q-48 to promote efficiency inadministration and operation; to adhere andconform to the terms of the instrument orcontract; and to maintain absolute separationof property free from any intrusion of conflictof interest.An institution incorporated or authorized toengage in trust and fiduciary business is underno obligation, either legal or moral, to acceptany such business being offered nor has it theright to accept if the same is contrary to law,rules, regulations, public order and publicpolicy. It shall advertise its services in a dignifiedmanner and enter such business only whendemand for such service is evident, whenspecially equipped to render such service andupon full appreciation of the responsibilitiesinvolved. It shall be ready and willing to givefull disclosure of the services being offered andshall conduct its dealing with transparency.Harmonious relationship shall likewise bepursued with other professions to achieve thecommon goal of mutual service to the publicand protection of its interest.(As amended by Circular Nos. 721 dated 13 May 2011 and 618dated 20 August 2008)Sec. 4402Q Scope of Regulations. Theseregulations shall govern the grant ofauthority to and the management,administration and conduct of trust, otherfiduciary business and investmentmanagement activities (as these terms aredefined in Sec. 4403Q) of NBFIs (e.g.,investment houses (IHs) and trustcorporations) allowed by law to performsuch operations.The regulations are divided into three(3) Sub-Parts where:A. Trust and Other Fiduciary Businessshall apply to institutions authorized toengage in trust and other fiduciary businessincluding investment managementactivities;B. Investment Management Activitiesshall apply to institutions without trustauthority but engaged in investmentmanagement activities; andC. General Provisions shall apply toboth.Sec. 4403Q Definitions. For purposes ofregulating the operations of trust and otherfiduciary business and investmentmanagement activities, unless the contextclearly connotes otherwise, the followingshall have the meaning indicated.a. Trust business shall refer to anyactivity resulting from a trustor-trusteerelationship (trusteeship) involving theappointment of a trustee by a trustor for theadministration, holding, management offunds and/or properties of the trustor by thetrustee for the use, benefit or advantage ofthe trustor or of others called beneficiaries.Manual of Regulations for Non-Bank Financial Institutions Q RegulationsPart IV - Page 1