MORNBFI Vol. 1 - Planters Development Bank

§§ 4415Q.4 - 4416Q08.12.31§ 4415Q.4 Compliance period;sanctions. The investment manager shallhave thirty (30) calendar days after the endof every calendar quarter within which todeposit with the BSP securities requiredunder this Section.The following sanctions shall beimposed for any deficiency in the basicsecurity deposit for the faithfulperformance of investment managementactivity:a. On the QB:i. Monetary penalty/ies:Penalty per Calendar DayOffenseThird andTrust First Second subsequentAsset Sizeoffense(s)Up toP500 P600.00 P700.00 P800.00millionAboveP500million P1,000.00 P1,250.00 P1,500.00but notexceedingP1 billionAboveP1 billionbut not P2,000.00 P3,000.00 P4,000.00exceedingP10 billionAboveP10 billionbut not P5,000.00 P6,000.00 P7,000.00exceedingP50 billionAboveP50 billion P8,000.00 P9,000.00 P10,000.00QBs with Full Trust Authority and with Trust Assets ofii. Non-monetary penalty beginningwith the third offense (all QBs) - Prohibitionagainst the acceptance of new IMAs, andfrom renewing expiring investmentmanagement contracts up to the time theviolation is corrected.b. On the Head of the InvestmentManagement Department and/or otherofficer(s) responsible for the deficiency/non-compliance:(1) First offense - warning thatsubsequent violations shall be dealt withmore severely;(2) Second offense - written reprimandwith a stern warning that subsequentviolations shall be subject to suspension;(3) Third offense - thirty (30) calendarday-suspension without pay; and(4) Subsequent offense(s) - sixty (60)calendar day-suspension without pay.For purpose of determining thefrequency of the violation the QB’scompliance profile for the immediatelypreceding three (3) years or twelve (12)quarters will be reviewed: Provided, Thatfor purposes of determining appropriatepenalty on the head of the InvestmentManagement Department and/or otherresponsible officer(s), any offense committedoutside the preceding three (3) year ortwelve (12) quarter-period shall beconsidered as the first offense: Provided,further, That in the case of the head of theInvestment Management Department, alloffenses committed by him in the past asthe head of the Investment ManagementDepartment of other institution(s) shall alsobe considered: Provided, finally, That if theoffense cannot be attributed to any otherofficer of the QB, the head of the InvestmentManagement Department shall beautomatically held responsible since theultimate responsibility for ensuringcompliance with the regulation rests uponhim, as evidence may warrant.(As amended by Circular Nos. 617 dated 30 July 2008 and585 dated 15 October 2007)Sec. 4416Q Organization and ManagementThe provisions under Sec. 4406Q up toSubsec. 4406Q.9 shall govern theorganization and management of institutionswithout trust license which are engaged ininvestment management activities only. Thefollowing terms shall, however, be used:Manual of Regulations for Non-Bank Financial InstitutionsQ RegulationsPart IV - Page 35