MORNBFI Vol. 1 - Planters Development Bank

§§ 4422Q - 4424Q08.12.31Sec. 4422Q Custody of Assets. All monies,properties or securities received by aninstitution in its capacity as trustee,fiduciary, or investment manager shall bekept physically separate and distinct fromthe assets of its other businesses and shallbe under the joint custody of at least two(2) persons, one of whom shall be an officerof the trust or investment managementdepartment, designated for that purpose bythe board of directors.The investment of each trust, otherfiduciary or IMA shall be kept physicallyseparated from those of other trust, otherfiduciary or IMAs, and adequately identifiedas the assets or property of the relevantaccount.Sec. 4423Q Fees and Commissions. Aninstitution acting as trustee, fiduciary orinvestment manager shall be entitled toreasonable fees and commissions whichshall be determined on the basis of the costof services rendered and the responsibilitiesassumed: Provided, That where the trustee,fiduciary or investment manager is actingas such under appointment by a court, thecompensation shall be that allowed orapproved by the court: Provided, further,That in the case of CTFs, the fee which atrustee may charge each participant shallbe fully disclosed by the trustee in the CTFplan, prospectus, flyers, posters and allforms of advertising materials to market thefund and in the documents given to clientsas proof of participation in the fund. In nocase shall such fees and commissions bebased on the excess of the income of thetrust, other fiduciary or investmentmanagement funds over a certain amountor percentage.No trustee, fiduciary or investmentmanager shall solicit or receive rebates oncommissions, fees and other payments forthe services rendered to the trust, otherfiduciary or IMA or beneficiaries of the trust,other fiduciary or IMA by stockbrokers, realestate brokers, insurance agents and similarpersons or entities unless the rebates, feesand other payments shall accrue to thebenefit of the trust, other fiduciary or IMAor the beneficiaries thereof.Officers and employees of the trustdepartment or investment managementdepartment of institutions, while serving assuch, shall be prohibited from retaining anycompensation for acting as co-trustee orfiduciary in the administration of a trust,other fiduciary or IMA.No institution shall collect, for its ownaccount, referral and/or arrangement fees,or any other fees that take the nature ofpayment to the institution from whateversource, in connection with loans sourcedfrom trust funds managed by its trustdepartment: Provided, That if such fees arecollected, the same shall be properlydisclosed to the trustor, and shall accrue tothe benefit of the trust, in accordance withthe provisions of Secs. 4401Q and 4407Q.(As amended by Circular No. 541 dated 30 August 2006)Sec. 4424Q Taxes. The terms and conditionsof trust, other fiduciary or investmentmanagement agreements, including CTFplans, shall contain provisions regarding theapplicability of regulations governingtaxation on the income of trust, otherfiduciary or investment managementaccounts. For this purpose, the trustee,fiduciary or investment manager shallmaintain adequate records and shall includeinformation such as the amount of finalincome tax withheld at source and theamount withheld by the trustee, fiduciaryor investment manager in the periodicreports submitted to trustors, beneficiaries,principals and other parties in interest.With respect to tax-exempt CTFs,individual trust and investment managementaccounts established under Section 24(B)(1)of R.A. No. 8424, the bank’s trustdepartment or investment managementdepartment shall be responsible forManual of Regulations for Non-Bank Financial InstitutionsQ RegulationsPart IV - Page 37