MORNBFI Vol. 1 - Planters Development Bank

§§ 4416Q - 4421Q09.12.31a. Investment management activities inlieu of trust and other fiduciary business;b. IMAs in lieu of trust and otherfiduciary accounts;c. Investment management committeein lieu of trust committee;d. Investment management officer inlieu of trust officer; ande. Investment management departmentin lieu of trust department.(As amended by M-2007-009 dated 22 March 2007)Sec. 4417Q Non-Investment ManagementActivities. The provisions of Sec. 4407Qshall apply in determining non-investmentmanagement activities except that the termstrust, other fiduciary, trustee and fiduciaryshall be disregarded.Sec. 4418Q Unsound Practices. Theprovisions of Sec. 4408Q shall govern theunsound practices for IMAs.Sec. 4419Q Conduct of InvestmentManagement Activities. The provisions ofSec. 4411Q shall govern the conduct ofinvestment management activities of aninstitution without trust license that isengaged in investment managementactivities.Sec. 4420Q Required Retained EarningsAppropriation. An institution authorized toengage in investment managementactivities shall, before the declaration ofdividends, carry to retained earningsappropriated for trust business at least tenpercent (10%) of its net profits realizedout of its investment managementactivities since the last preceding dividenddeclaration until the retained earningsshall amount to twenty percent (20%) ofits authorized capital stock and no part ofsuch retained earnings shall at any timebe paid out in dividends, but lossesaccruing in the course of its business maybe charged against retained earnings.C. GENERAL PROVISIONSSec. 4421Q Books and Records. Theinstitution’s trust department orinvestment management department shallkeep books and records on trust, otherfiduciary and IMAs separate and distinctfrom the books and records of its otherbusinesses and shall follow the FRPTIprescribed by the BSP.Each trust, other fiduciary or IMA shallhave a record separate from all otheraccounts except only in the case of CTFswhere the trustee can maintain commonrecords utilizing pooled fund accountingmethod for each fund: Provided, That thetrustee shall clearly indicate in the recordsthe trustors owning participation in theCTF and the extent of the interest of suchtrustors.Books and records shall contain fullinformation relative to each trust, otherfiduciary or IMA and shall be supported byduplicate signed copies of relateddocuments. Said records and duplicatesigned copies or related documents shallbe compiled and kept as to allow inspectionby BSP examiners and submission ofinformation or reports as may be requiredby competent authorities.The QB's trust department orinvestment management department shallmaintain separate general ledger accountsand other relevant sub-accounts fortax-exempt individual trust accounts,CTFs and individual managementaccounts established under Section24(B)(1) of R.A. No. 8424 and Subsecs.4409.8, 4411.9, and Item “8” of AppendixQ-32. The bank’s trust department orinvestment management department shallalso adopt appropriate systems, internalcontrol procedures and audit trailmechanisms to ensure that the correctamount of final tax is withheld orexempted from such accounts.(As amended by Circular No. 653 dated 05 May 2009)Q RegulationsPart IV - Page 36Manual of Regulations for Non-Bank Financial Institutions