MORNBFI Vol. 1 - Planters Development Bank

§§ 4411Q.1 - 4411Q.408.12.31(4) Purposes and objectives;(5) The initial amount of funds and/orvalue of securities subject of thearrangement delivered to the investmentmanager;(6) Statement in underlined noticeableprint that:(a) The agreement is an agency and nota trust agreement. As such, the client shallat all times retain legal title to funds andproperties subject of the arrangement;(b) The arrangement does not guarantya yield, return or income by the investmentmanager. As such, past performance of theaccount is not a guaranty of futureperformance and the income of investmentscan fall as well as rise depending onprevailing market conditions; and(c) The investment managementagreement is not covered by the PDIC andthat losses, if any, shall be for the accountof the client;(7) Duties and powers of theinvestment manager;(8) Liabilities of the investmentmanager;(9) Reports to the client;(10) The amount or rate of thecompensation of the investment manager;(11) Terms and conditions governingwithdrawals from the account;(12) Termination of contractualarrangement; and(13) Disclosure requirements fortransactions requiring prior authorityand/or specific written investment directivesfrom the client.A sample investment managementagreement which conforms to theforegoing requirements is shown asAppendix Q-14.§ 4411Q.2 Minimum size of eachinvestment management account. No IMAshall be accepted or maintained for anamount less than P1.0 million. An IMAreduced to less than P1.0 million due toinvestment losses shall be exempt from thisrequirement.§ 4411Q.3 Commingling of fundsTwo (2) or more individual IMAs shall notbe commingled except for the purpose ofinvesting in government securities or in dulyregistered commercial papers: Provided,That the participation of each of theaforementioned accounts in the commingledaccount shall not be less than P1 million:Provided, further, That such comminglinghas been fully disclosed and specificallyagreed in writing by the clients.§ 4411Q.4 Lending and investmentdisposition. Assets received in investmentmanagement capacity shall be administeredin accordance with the terms of theinstrument creating the investmentmanagement relationship.When an investment manager isgranted discretionary powers in theinvestment disposition of investmentmanagement funds and unless otherwisespecifically enumerated in the agreementor indenture and directed in writing by theclient, loans and investments of the fundshall be limited to:a. Evidences of indebtedness of theRepublic of the Philippines and of the BSP,and any other evidences of indebtedness orobligations the servicing and repayment ofwhich are fully guaranteed by the Republicof the Philippines or loans against suchgovernment securities;b. Loans fully guaranteed by theRepublic of the Philippines as to the paymentof principal and interest;c. Loans fully secured by a hold-outon, assignment or pledge of depositsubstitutes maintained with the institutionor deposits with banks, or mortgage andchattel mortgage bonds issued by theinvestment manager; andd. Loans fully secured by real estate orchattels in accordance with Section 78 ofManual of Regulations for Non-Bank Financial InstitutionsQ RegulationsPart IV - Page 29