MORNBFI Vol. 1 - Planters Development Bank

§§ 4405Q.4 - 4405Q.508.12.31(2) Second offense - written reprimandwith a stern warning that subsequentviolations shall be subject to suspension;(3) Third offense - thirty (30) calendarday-suspension without pay; and(4) Subsequent offense(s) - sixty (60)calendar day-suspension without pay.For purposes of determining thefrequency of the violation, the QB'scompliance profile for the immediatelypreceding three (3) years or twelve (12)quarters will be reviewed: Provided, Thatfor purposes of determining appropriatepenalty on the trust officer and/or otherresponsible officer(s), any offensecommitted outside the preceding three (3)year or twelve (12) quarter-period shall beconsidered as the first offense: Provided,further, That in the case of trust officer, alloffenses committed by him in the past astrust officer of other institution(s) shall alsobe considered: Provided, finally, That if theoffense cannot be attributed to any otherofficer of the QB, the trust officer shall beautomatically held responsible since theultimate responsibility for ensuringcompliance with the regulation rests uponhim, as evidence may warrant.(As amended by Circular Nos. 617 dated 30 July 2008 and 585dated 15 October 2007)§ 4405Q.5 Reserves against pesodenominatedCommon Trust Funds (CTFs)and Trust and Other Fiduciary Accounts(TOFA) - Othersa. Reserves against peso-denominatedCTFs. In addition to the basic securitydeposit, an institution authorized to engagein trust and other fiduciary business shallmaintain reserves on -(1) peso-denominated CTF; and(2) such other managed peso fundswhich partake the nature of collectiveinvestment of a peso-denominated CTF asmay be indicated by the presence of thefollowing features:(a) The funds are composed ofcontributions from two (2) or more investors;(b) The funds are managed/administeredas a vehicle for collective investment andreinvestment;(c) The trustee/administrator/agent hasthe exclusive management and controlover the funds and the sole right at any timeto sell, convert, invest, exchange, transferor otherwise change or dispose of theassets comprising the funds; and(d) Investments/contributions to, orwithdrawals from, the funds are beingallowed at anytime or as of a fixed date inthe future, and/or the income, net of allexpenses incurred in the management ofthe fund plus the fee of the trustee/administrator/agent, are being distributedamong the participants of the funds,without the need to liquidate all assets ofthe funds.The reserves to be maintained shall beas follows:(i) Regular reserves 10% 1(ii) Liquidity reserves 11% 2The liquidity reserve shall bemaintained in the RDA with the BSP, ormay be in the form of the following:Provided, That it complies with theguidelines shown in Appendix Q-41.(i) Short-term market-yieldinggovernment securities purchased directlyfrom the BSP-Treasury Department (TD);(ii) NDC Agri-Agra ERAP Bonds,regardless of maturity. The requirement thatthe securities used shall have a term ofnot more than one (1) year shall not apply;and(iii) Poverty Eradication and AlleviationCertificates (PEACe) bonds only to theextent of the original gross issue proceedsdetermined at the time of the auction, pluscapitalized interest on the underlyingzero-coupon Treasury Notes as and whenthe corresponding interest is earned overthe life of the bonds.1From 6% to 9% regular reserve effective the reserve week starting 7 January 2005 under MAB dated 29 December 2004and from 9% to 10% regular reserve effective the reserve week starting 15 July 2005 under Circular 491 dated 12 July 20052From 10 % to 11% under Circular 491 dated 12 July 2005, effective the reserve week starting 15 July 2005.Manual of Regulations for Non-Bank Financial InstitutionsQ RegulationsPart IV - Page 7