MORNBFI Vol. 1 - Planters Development Bank

§§ 4441Q.5 - 4441Q.711.12.31(1) Standard custody/registry agreementand other standard documents;(2) Organizational structure of thecustody/registry business;(3) Transaction flow; and(4) For those already in the custody orregistry business, a historical backgroundfor the past three (3) years;l. It shall be conducted in a separateunit headed by a qualified person with atleast two (2) years experience in custody/registry operations;m. It can interface with the clearing andsettlement system of any recognizedexchange in the country capable of achievinga real time gross settlement of trades; andn. A securities custodian whichprovides the value-added service ofsecurities lending involving securities thatare sold, offered for sale or distributedwithin the Philippines must be a dulylicensedlending agent registered with theSEC.(As amended by Circular No. 714 dated 10 March 2011)§ 4441Q.6 Functions andresponsibilities of a securities custodianA securities custodian shall have thefollowing basic functions andresponsibilities:a. Safekeeps the securities of the client;b. Holds title to the securities in anominee capacity;c. Executes purchase, sale and otherinstructions;d. Performs at least a monthlyreconciliation to ensure that all positionsare properly recorded and accounted for;e. Confirms tax withheld;f. Represents clients in corporateactions in accordance with the directionprovided by the securities owner;g. Conducts mark-to-market valuationand statement rendition;h. Does earmarking of encumbrancesor liens such as, but not limited to, Deedsof Assignment and court orders;i. Acts as a collecting and paying agentin respect of dividends, interest earnings orproceeds from the sale/redemption/maturityof securities held under custodianship:.Provided, That the custodian shallimmediately make known to the securitiesowner all collections received andpayments made with respect to thesecurities under custody; andj. In addition to the above basicfunctions, it may perform the value-addedservice of securities lending as agent:Provided, That it complies with the prequalificationrequirements under Item “n”of Subsec. 4441Q.5: Provided, further,That the securities lending service shallbe covered by a Securities LendingAuthorization Agreement (SLAA) whichshall be attached to the custody contract.A securities custodian which rendersthe value-added service of securitieslending involving securities that are sold,offered and distributed within thePhilippines shall comply with thepertinent rules and regulations of the SECon securities lending and borrowingoperations.(As amended by Circular No. 714 dated 10 March 2011)§ 4441Q.7 Functions andresponsibilities of a securities registrya. Maintains an electronic registrybook;b. Delivers confirmation oftransactions and other documents withinagreed trading periods;c. Issues registry confirmations fortransfers of ownership as it occurs;d. Prepares regular statement ofsecurities balances at such frequency asmay be required by the owner on recordbut not less frequent than every quarter; ande. Follows appropriate legalManual of Regulations for Non-Bank Financial InstitutionsQ RegulationsPart IV - Page 43