MORNBFI Vol. 1 - Planters Development Bank

§§ 4410Q.5 - 4410Q.608.12.31participation shall be admitted to, orredeemed from, the fund except on the basisof such valuation. To arrive at a fund’sNAVPu, the fund’s total Net Assets isdivided by the total outstanding units. TotalNet Assets is a summation of the marketvalue of each investment less fees, taxes, andother qualified expenses, as defined underthe plan rules.§ 4410Q.6 Plan rules. Each UIT Fundshall be established, administered andmaintained in accordance with a writtentrust agreement drawn by the trustee,referred to as the “Plan” which shall beapproved by the board of directors of thetrustee and a copy of which shall besubmitted to the BSP for processing andapproval prior to its implementation. Eachnew UIT Fund Plan filed for approval shallbe charged a processing fee of P10,000.00.The Plan shall contain the followingminimum elements:a. Title of the Plan. This shallcorrespond to the product/brand name bywhich the UIT Fund is proposed to beknown and made available to its clients.The Plan rules shall state the classificationof the UIT Fund (e. g., money market fund,bond fund, balanced fund and equity fund).b. Manner by which the fund is to beoperated. A statement of the fund’sinvestment objectives and policiesincluding limitations, if any.c. Risk disclosure. The Plan rules shallstate both the general risks and risksspecific to the type of fund.d. Investment powers of the trusteewith respect to the fund, including thecharacter and kind of investments, whichmay be purchased, by the fund. There mustbe an unequivocal statement of the fulldiscretionary powers of the trustee as faras the fund’s investments are concerned.These powers shall be limited only by theduly stated investment objective andpolicies of the fund.e. The unitized NAVPu valuationmethodology as prescribed under Subsec.4410Q.5.d shall be employed.f. Terms and conditions governing theadmission or redemption of units ofparticipation in the fund. The Plan rules shallstate that the trustee, prior to admission of aclient’s initial participation in the UIT Fund,shall conduct a client suitability assessmentto profile the risk-return orientation andsuitability of the client to the specific typeof fund. If the frequency of admission orredemption is other than daily; that is, anybusiness day, the same should be explicitlystated in the Plan rules: Provided, That theadmission and redemption shall be basedon the end of day NAVPu of the fundcomputed after the cut-off time for fundparticipation and redemption for thatreference day, in accordance with existingBSP regulations on mark to market valuationof investment securities.g. Aside from the regular auditrequirement applicable to all trustaccounts, an external audit of each UITFund shall be conducted annually by anindependent auditor acceptable to the BSPand the results thereof made available toparticipants. The external audit shall beconducted by the same external auditorengaged for the audit of the trust entity.h. Basis upon which the fund may beterminated. The Plan rules shall state therights of participants in case of terminationof the fund. Termination of the fund shallbe duly approved by the trustee’s board ofdirectors and a copy of the resolutionsubmitted to the appropriate departmentof the BSP.i. Liability clause of the trustee. Theremust be a clear and prominent statementadjacent to where a client is required tosign the participating trust agreement that(1) the UIT Fund is a trust product and nota deposit account or an obligation of, orguaranteed, or insured by the trust entityor its affiliates or subsidiaries; (2) the UITManual of Regulations for Non-Bank Financial InstitutionsQ RegulationsPart IV - Page 23