MORNBFI Vol. 1 - Planters Development Bank

§§ 4411Q.7 - 4411Q.909.12.31the same person, firm or corporation shallbe combined.§ 4411Q.8 Other applicable regulationson loans and investments - investmentmanagement account. The loans andinvestments of IMAs shall be subject topertinent laws, rules and regulations forQBs that shall include, but need not belimited to, the following:a. Requirements of Sections 39 and 40of R.A. No. 8791 (The General BankingLaw of 2000);b. Provisions of Section 4(e) of theNew Rules on Registration of Short-TermCommercial Papers and Section 7(f) of theNew Rules on Registration of Long-TermCommercial Papers issued by the SEC(Appendices 13 and 14);c. Criteria for past due accounts;d. Qualitative appraisal of loans,investments and other assets that mayrequire provision for probable losses whichshall be booked in accordance with theFRPTIs;e. Requirements of Sections 3 and 8of the SRC; andf. Provisions of Section 44 –Investments by Philippine Residents – ofthe FX Manual, such that the crosscurrencyinvestments of peso IMAs, shallbe subject to the following conditions:(1) All cash flows of the investmentmanager shall only be in pesos. In case theforeign exchange acquired or received bythe principal as dividends/earnings ordivestment proceeds on such investment areintended for reinvestment abroad, the sameproceeds are not required to be inwardlyremitted and sold for pesos throughauthorized agent banks: Provided, That suchproceeds are reinvested abroad within two(2) banking days from receipt of the fundsabroad;(2) The investment manager 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) authorized in writing by theprincipal and/or accredited by theinvestment manager: Provided, That, theconduct, documentation, and settlement ofany of these transactions shall be outsidePhilippine jurisdiction;(3) The investment manager shallrecord cross-currency investmenttransactions in the peso regular books attheir foreign currency amounts and theirlocal currency equivalent using thePhilippine Dealing System peso/US dollarclosing rate and the New York US dollar/third currencies closing rate; and(4) The investment manager shallcomply with the reportorial requirementsthat may be prescribed by the BSP, whichshall include as a minimum, the foreigncurrency amount and the local currencyequivalent of the total cross currencyinvestments with details on: (a) type ofinvestments; and (b) amount of cash flowconverted.For purposes of this Subsection,“resident”, as defined under Section 1 of theFX Manual, shall refer to the principal thatengages the services of the investmentmanager under an investment managementagreement.(Circular No. 676 dated 29 December 2009)§ 4411Q.9 Operating and accountingmethodology. IMAs shall be operated andaccounted for in accordance with thefollowing:a. The investment manager shalladminister, hold or manage the fund orproperty in accordance with the instrumentcreating the investment managementrelationship; andManual of Regulations for Non-Bank Financial InstitutionsQ RegulationsPart IV - Page 31