MORNBFI Vol. 1 - Planters Development Bank

§§ 4403Q - 4404Q.308.12.31which carries out the investmentmanagement activities of an institution thatdoes not have an authority to engage intrust and other fiduciary business.t. Investment Management Officershall refer to the designated head orofficer-in-charge of the investmentmanagement department of an institutionwhich does not have the authority toengage in trust and other fiduciarybusiness.u. Investment management accountshall refer to an account wheretransactions arising from investmentmanagement activities are kept andrecorded.A. TRUST AND OTHER FIDUCIARYBUSINESSSec. 4404Q Authority to Perform Trustand Other Fiduciary Business. With priorapproval of the Monetary Board, trustcorporations and IHs may engage in trustand other fiduciary business under ChapterIX of R.A. No. 8791, as amended andSection 7 of P.D. No. 129, as amended.Entities whose articles of incorporation 1or any amendments thereto, include thepurpose or power to engage in trust andother fiduciary business, shall secure theprior favorable recommendation of theMonetary Board pursuant to Section 17 ofthe Corporation Code.If an entity is found to be engaged inunauthorized trust and other fiduciarybusiness and/or investment managementactivities, whether as its primary,secondary or incidental business, theMonetary Board may imposeadministrative sanctions against suchentity or its principal officers and/ormajority stockholders or proceed againstthem in accordance with law.The Monetary Board may take suchaction as it may deem proper such as, butmay not be limited to, requiring thetransfer or turnover of any trust and otherfiduciary and/or IMA to duly incorporatedand licensed entities of the choice of thetrustor, beneficiary or client, as the casemay be.No entity shall advertise or representitself as being engaged in trust and otherfiduciary business or in investmentmanagement activities or represent itselfas trustee or investment manager or usewords of similar import and/or use inconnection with its business title, the wordstrust, trust corporation, trust company, trustplan or words of similar import, withouthaving obtained the required authority todo so.Starting year 2001, IHs authorized toengage in trust and other fiduciary businessshall renew their existing licenses yearly,subject to the implementing guidelines tobe issued thereon.(As amended by CL-2008-078 dated 15 December 2008,CL-2008-053 dated 21 August 2008 and CL-2008-007 dated21 January 2008)§§ 4404Q.1 - 4404Q.2 (Reserved)§ 4404Q.3 Prerequisites for engagingin trust and other fiduciary business. Aninstitution, before it may engage in trustand other fiduciary business, shall complywith the following requirements:a. The applicant has combined capitalaccounts of not less than P250 million orsuch amount as may be required by theMonetary Board or other regulatoryagency. For this purpose, combined capitalaccounts shall have the same meaning asin Sec. 4111Q;b. The applicant has been dulylicensed or incorporated as an FI by theappropriate government agency or createdby special law or charter;c. The articles of incorporation orcharter of the institution shall includeamong its powers or purposes, acting astrustee or administering any trust or holding1SEC Memorandum Circular Nos. 5 dated 17 July 2008, 3 dated 16 February 2006 and 14 dated 24 October 2000.Manual of Regulations for Non-Bank Financial InstitutionsQ RegulationsPart IV - Page 3