MORNBFI Vol. 1 - Planters Development Bank

§§ 4426Q.1 - 4428Q09.12.31activities have been administered inaccordance with laws, BSP rules andregulations, and sound trust or fiduciaryprinciples.§ 4426Q.2 External audit. The trust andother fiduciary business and investmentmanagement activities of an institution shallbe included in the annual financial audit byindependent external auditors requiredunder Sec. 4190Q.The audit of the assets andaccountabilities of the trust department/investment management department of anNBFI authorized to engage in trust and otherfiduciary business/investment managementactivities, which shall cover at the minimuma review of the trust/investment managementoperations, practices and policies, includingaudit and internal control system, shall besubject to auditing standards to the extentnecessary to express an opinion on thefinancial statements.The audit of the trust/investmentmanagement department of an institutionauthorized to engage in trust and otherfiduciary business/investment managementactivities shall be covered by a separatesupplemental audit report to be submittedto the institution’s board of directors and tothe BSP within the prescribed periodcontaining, among other things, thecomplete set of financial statements of thetrust/investment management department ofan institution prepared in accordance withthe provisions of Subsec. 4426Q togetherwith the other information required by theBSP to be submitted under Sec. 4190Q:Provided, That a reconciliation statement ofthe balance sheet in the AFS and the FRPTIshall be prepared for each of the generalcategories of contractual relationships (i.e.,UITF-trust, institutional-trust, and individualtrust; other fiduciary; institutional-agency,and individual-agency; and specialpurpose trust) of the trust/investmentmanagement department of an institutionwith its clients following the format inAppendix Q-50.(As amended by Circular No. 653 dated 05 May 2009)§ 4426Q.3 Board action. A report of theforegoing audits, together with the actionsthereon, shall be noted in the minutes of theboard of directors of the institution.Sec. 4427Q Authority Resulting fromMerger or Consolidation. In merger of FIs,the authority to engage in trust and otherfiduciary business and in investmentmanagement activities shall continue to bein effect if the surviving institution has suchauthority and the same has not beenwithdrawn by the BSP. In case the survivinginstitution does not have previous authoritybut desires to engage in trust and otherfiduciary business and in investmentmanagement activities, it shall secure theprior approval of the Monetary Board toengage in such business as part of itsapplication for merger to enable it toincorporate such among its powers orpurpose clause in its articles ofincorporation, articles of merger, by-lawsand such other pertinent documents.In the consolidation of FIs where theresulting entity is an entirely new one, itshall secure from the Monetary Board anauthority to engage in trust and otherfiduciary business or in investmentmanagement activities before it may engagein such business.Sec. 4428Q Receivership. Whenever areceiver is appointed by the Monetary Boardfor an institution that is authorized to engagein trust and other fiduciary business or ininvestment management activities, thereceiver shall, pursuant to the instructionsof the Monetary Board, proceed to close theQ RegulationsPart IV - Page 40Manual of Regulations for Non-Bank Financial Institutions