MORNBFI Vol. 1 - Planters Development Bank

§§ 4410Q.11 - 4411Q.108.12.31§ 4410Q.11 Unit investment trust fundadministration supporta. Backroom operations. Administrativerules on backroom under Sec. 4421Q shallbe applicable to UIT Fund. Adequatesystems to support the daily marking-tomarketof the fund’s financial instrumentsshall be in place at all times. In this respect,a daily reconcilement of the fund’s resultantmarked-to-market value with the unrealizedmarket losses and gains (respective contraasset balance) versus the book value of thefund for investments in financial instrumentsshall be done and all differences resolvedwithin the day.b. Custody of securities. Investments insecurities of a UIT Fund shall be held forsafekeeping by BSP accredited third partycustodians which shall perform independentmarking-to-market of such securities.§ 4410Q.12 Counterpartiesa. Dealings with related interests/QBproper/holding company/subsidiaries/affiliates and related companies. A trusteeof a UIT Fund shall be transparent at alltimes and maintain an audit trail for alltransactions with related parties or entities.The trustee shall observe the principle ofbest execution and no purchase/sale shallbe made with related counterpartieswithout considering at least two (2)competitive quotes from other sources.b. Accreditation of counterpartiesThe Fund shall only invest with approvedcounterparties qualified in accordance withthe policy duly approved by the TrustCommittee. Counterparties shall be subjectto appropriate limits in accordance withsound risk management principles.§ 4410Q.13 Foreign currencydenominatedunit investment trust fundsUIT Fund denominated in any acceptableforeign currency provided under existingBSP rules and regulations may beestablished. Such fund may only be investedin allowable investments denominated inpesos or any acceptable foreign currencyas expressly allowed under the fund’s Planrules and properly disclosed to fundparticipants.§ 4410Q.14 Exemptions from statutoryand liquidity reserves, single borrowerslimit, directors, officers, stockholders andtheir related interest. The provisions onreserves, single borrower’s limit and DOSRIceilings under Secs. 4330Q and 4331Q,respectively, applicable to trust funds ingeneral shall not be made applicable to UITFunds.Sec. 4411Q Investment ManagementActivities. The conduct of investmentmanagement activities shall be subject tothe following regulations.§ 4411Q.1 Minimum documentaryrequirements. An investment managementaccount (IMA) shall be covered by a writtendocument establishing such account, asfollows:a. In the case of accounts created bycorporations, business firms, organizationsor institutions, the voluntary writtenagreement or indenture entered into by theparties, accompanied by a copy of the boardresolution or other evidence authorizing theestablishment of, and designating thesignatories, to the investment managementaccount.b. In the case of accounts created byindividuals, the voluntary written agreementor indenture entered into by the parties.The voluntary written agreement orcontract shall include the followingminimum provisions:(1) Prenumbered contractual agreementform;(2) Title or nature of contractualagreement in noticeable print;(3) Legal capacities, in noticeable print,of parties sought to be covered;Q RegulationsPart IV - Page 28Manual of Regulations for Non-Bank Financial Institutions