MORNBFI Vol. 1 - Planters Development Bank

§§ 4406Q.2 - 4406Q.409.12.31designate the chairman who shall be oneof the directors referred to above.§ 4406Q.3 Qualifications of committeemembers, officers and staff. Theinstitution’s trust department shall be staffedby persons of competence, integrity andhonesty. Directors, committee members andofficers charged with the administration oftrust and other fiduciary activities shall, inaddition to meeting the qualificationstandards prescribed for directors andofficers of FIs, possess the necessarytechnical expertise in such business:Provided, That trust officers who shall beappointed shall have at least five (5) yearsof actual experience in trust operations, orat least three (3) years of actual experiencein trust operations and completed at leastone (1) year training program in trustoperations acceptable to the BSP, or at leastfive (5) years of actual experience as officerof a bank, NBFI or related activities andcompleted at least one (1) year trainingprogram in trust operations acceptable tothe BSP.(As amended by Circular No. 665 dated 04 September 2009)§ 4406Q.4 Responsibilities ofadministrationa. Board of Directors. The board ofdirectors is responsible for the properadministration and management of trust andother fiduciary business. Funds andproperties held in trust or in any fiduciarycapacity shall be administered with the skill,care, prudence and diligence necessaryunder the circumstances then prevailing thata prudent man, acting in like capacity andfamiliar with such matters, would exercisein the conduct of an enterprise of likecharacter and with similar aims.The responsibilities of the board ofdirectors shall include, but need not belimited to the following:(1) It shall determine and formulategeneral policies and guidelines on the:(a) acceptance, termination, or closure oftrust and other fiduciary accounts; (b)proper administration and management ofeach trust and other fiduciary accounts; and(c) investment, reinvestment and dispositionof funds or property held in its capacity astrustee or fiduciary;(2) It shall direct and review the actionsof the trust committee and all officers andemployees designated to manage the trustand other fiduciary accounts, especiallyaccounts without specific agreements oninvestments or discretionary accounts;(3) It shall approve or confirm theacceptance, termination or closure of alltrust and other fiduciary accounts and shallrecord such in its minutes;(4) Upon the acceptance of an account,it shall immediately review all non-cashassets received for management. Likewise,it shall make a review of the trust and/orfiduciary assets at least once every twelve(12) months to determine the advisabilityof retaining or disposing of such assets;(5) It shall be responsible for takingappropriate action on the examinationreports of supervisory agencies, internaland/or external auditors on the institution’strust and other fiduciary business andrecording such actions thereon in theminutes;(6) It shall designate the members of thetrust committee, the trust officer andsubordinate officers of the trust departmentand shall be responsible for requiringreports from said committee and officersand recording its actions thereon in theminutes; and(7) It shall establish an appropriatestaffing pattern and adopt operating budgetsthat shall enable the trust department toeffectively carry out its functions. It shalllikewise be responsible for providing theofficers and staff of the institution withappropriate training programs in theadministration and operation of all phasesof trust and other fiduciary business.Manual of Regulations for Non-Bank Financial InstitutionsQ RegulationsPart IV - Page 11