MORNBFI Vol. 1 - Planters Development Bank

APP. Q-1808.12.31administration, as well as the integrity,experience and expertise of the organizersand the proposed managerial staff, providereasonable assurance that the enterprisewill be conducted with financial prudence.D. Issuance of Certificate ofIncorporation - Upon compliance with allthe requirements of law and implementingrules, and the Commission is satisfied thatthe formation of the IH will promote publicinterest and economic growth, a Certificateof Incorporation will be issued to it. Alicense to operate shall also be granted afterit shall have adopted its by-laws, electedits directors and appointed its officers.E. Annual Fees - On or before thefifteenth day of January of each year, andfor as long as its license to operate remainsin effect, each IH shall pay a fee of P200.At the time of payment, the Commissionmay require the licensee to appear andinform the Commission of the results of itsoperations.F. Branch Operations - No IH shallopen, maintain or operate a branch oragency without first securing from theCommission a license to operate a branchin a particular locality. All applications fora license to operate a branch shall be actedupon by the Commission within ninety (90)days after submission of such documentsas may be required by the Commission insupport of such application.G. Use of the Term "InvestmentHouse" - No person, association,partnership or corporation other than thoseduly licensed as an IH in accordance withthese rules and regulations, shall advertiseor hold itself out as being engaged in thebusiness of an IH.Sec. 4. Underwriting RequirementsUnderwriting agreements entered into byan IH, with respect to public distribution ofsecurities, including the fees to be chargedin connection therewith, shall be subjectto the approval of the Commission, it beingunderstood that no public distribution ofsecurities shall be made without suchapproval. The Commission may imposesuch terms and conditions as may benecessary in the public interest and for theprotection of investors; and it may requirethe submission of such documents as maybe necessary to ascertain compliance withsuch standards of operation as it mayestablish. Transactions which constitutequasi-banking functions shall be subject toBSP regulation.As a gesture of faith in the issue, an IHmay take for its own account a portion ofthe securities it underwrites but shall sellsuch securities to the public.Sec. 5. Management of Funds. TheCommission, by circular, shall providelimitations on investments of discretionaryaccounts under the management of an IH.Should the IH engage in themanagement of funds, it must at all timesadhere to the prudent man's rule. The IHshall ensure that the interest of the fundsmanaged is promoted and that theoperation of the funds is undertaken on anarms' length basis.The Commission may require suchdocuments and reports as may benecessary, in order to determine ifprudence and safety of the principal havebeen paramount in the decision of the IH.Sec. 6. Underwriting Fees. Except inhighly meritorious cases, as approved bythe Commission, an IH shall not collectunderwriting fees in excess of five percent(5%) of the amount generated by theunderwriter for the issuer.Sec. 7. Contingency Reserves. An IHshall provide annually a reserve forcontingencies in such reasonable amountas may be required by the Commission.Manual of Regulations for Non-Bank Financial InstitutionsQ RegulationsAppendix Q-18 - Page 3