MORNBFI Vol. 1 - Planters Development Bank

§§ 4409Q.5 - 4409Q.609.12.31§ 4409Q.5 Funds awaiting investmentor distribution. Funds held by the trusteeor fiduciary awaiting investment ordistribution shall not be held uninvestedor undistributed any longer than isreasonable for the proper management ofthe account.§ 4409Q.6 Other applicableregulations on loans and investments - trustand other fiduciary accounts. The loans andinvestments of trust and other fiduciaryaccounts shall be subject to pertinent laws,rules and regulations for QBs that shallinclude, but need not be limited to, thefollowing:a. Requirements of Sections 39 and 40of R.A. No. 8791 (The General BankingLaw of 2000);b. Provisions of Section 4(e) of the NewRules on Registration of Short-TermCommercial Papers and Section 7(f) of theNew Rules on the Registration of Long-TermCommercial Papers issued by the SEC(Appendices Q-7 and Q-8).c. Criteria for past due accounts; andd. Qualitative appraisal of loans,investments and other assets that mayrequire provisions for probable losseswhich shall be booked in accordance withthe Financial Reporting Package for TrustInstitutions (FRPTI);e. Requirements of Sections 3 and 8of the Securities and Regulation Code(SRC); andf. Provisions of Section 44 –Investments by Philippine residents – ofthe BSP Manual of Regulations on ForeignExchange Transactions (FX Manual), suchthat the cross-currency investments of pesotrust and other fiduciary accounts,including peso unit investment trust (UIT)funds, shall be subject to the followingconditions:(1) All cash flows of the trustee orfiduciary shall only be in pesos. In casethe foreign exchange acquired or receivedby the trustee or fiduciary as dividends/earnings or divestment proceeds on suchinvestment are intended for reinvestmentabroad, the same proceeds are not requiredto be inwardly remitted and sold for pesosthrough authorized agent banks: Provided,That such proceeds are reinvested abroadwithin two (2) banking days from receipt ofthe funds abroad;(2) The trustee or fiduciary shallpurchase, invest, reinvest, sell, transfer ordispose foreign currency-denominatedfinancial instruments, including securities asdefined in Section 3 of the SRC, through adistributor or underwriter duly authorizedor licensed by the government of the issuerof such instruments, or a counterparty FI(seller or buyer) accredited by the trustee orfiduciary: Provided, That, the conduct,documentation, and settlement of any ofthese transactions shall be outsidePhilippine jurisdiction;(3) The trustee of fiduciary shall recordcross-currency investment transactions inthe peso regular books at their foreigncurrency amounts and their local currencyequivalent using the Philippine DealingSystem peso/US dollar closing rate and theNew York US dollar/third currencies closingrate; and(4) The trustee or fiduciary shall complywith the reportorial requirements that maybe prescribed by the BSP, which shallinclude as a minimum, the foreign currencyamount and the local currency equivalentof the total cross currency investments withdetails on: (a) type of investments; and(b) amount of cash flow converted.For purposes of this Subsection,“resident”, as defined under Section 1 of theFX Manual, shall refer to the (a) trustee orfiduciary that administers the assets receivedin trust or in other fiduciary capacity; or(b) principal that engages the services of theinvestment manager under an investmentmanagement agreement.(As amended by Circular No. 676 dated 29 December 2009)Manual of Regulations for Non-Bank Financial InstitutionsQ RegulationsPart IV - Page 17