MORNBFI Vol. 1 - Planters Development Bank

§§ 4409Q.16 - 4409Q.1708.12.31f. Waiver of confidentiality. A QBdesignated as trustee of any mortgage orbond issued by any municipality, GOCC,or any body politic shall submit to theappropriate department of the SES a waiverof the confidentiality of information underSections 2 and 3 of R.A. No. 1405, asamended, duly executed by the issuer of themortgage or bond in favor of the BSP.g. Reportorial requirements. A QBauthorized by the BSP to act as trustee ofthe proceeds of mortgage or bond issuanceof a municipality, GOCC, or body politicshall comply with reportorial requirementsthat may be prescribed by the BSP.h. Applicability of the rules andregulations on Trust, Other FiduciaryBusiness and Investment ManagementActivities. The provisions of the Rules andRegulations on Trust, Other FiduciaryBusiness and Investment ManagementActivities not inconsistent with theprovisions of this Subsection shall form partof these rules.i. Sanctions. Without prejudice to thepenal and administrative sanctionsprovided for under Sections 36 and 37,respectively, of the R.A. No. 7653,violation of any provision of this Subsectionshall be subject to the following sanctions/penalties depending on the gravity of theoffense:(1) First offense –(a) Fine of up to P10,000 a day for theinstitution for each violation reckoned fromthe date the violation was committed upto the date it was corrected; and(b) Reprimand for the directors/officersresponsible for the violation.(2) Second offense –(a) Fine of up to P20,000 a day for theinstitution for each violation reckoned fromthe date the violation was committed upto the date it was corrected;(b) Suspension for ninety (90) dayswithout pay for directors/officersresponsible for the violation; and(c) Revocation of the authority to act astrustees on any mortgage or bond issuanceby any municipality, GOCCs, or bodypolitic.(3) Subsequent offense –(a) Fine of up to P30,000 a day for theinstitution for each violation reckoned fromthe date the violation was committed up tothe date it was corrected;(b) Suspension or revocation of the trustlicense;(c) Suspension for 120 days withoutpay of the directors/officers responsible forthe violation.§ 4409Q.17 Trust fund of pre-needcompanies. The following rules andregulations shall govern the acceptance,management and administration of the trustfunds of pre-need companies by entitiesauthorized to perform trust and otherfiduciary functions.a. Administration of trust fund. In linewith the policy of providing greaterprotection to pre-need planholders,prudential measures are hereby laid out inthe administration of trust funds of pre-needcompanies. The trust fund, inclusive ofearnings, shall be administered andmanaged by the trustee with the skill, care,prudence and diligence necessary underthe circumstances then prevailing that aprudent man, acting in the same capacityand familiar with such matters, wouldexercise in the conduct of an enterprise ofa like character and similar aims.The trustee shall have exclusivemanagement and control over the trustfund and the right at any time to sell,convert, invest, change, transfer orotherwise dispose of the assets comprisingthe funds.b. Trustee. No trust entity shall act asa trustee or administer or hold a trust fundestablished by a pre-need company, whichis a subsidiary or affiliate, as defined underexisting BSP regulations, of such trust entity.Q RegulationsPart IV - Page 20Manual of Regulations for Non-Bank Financial Institutions