MORNBFI Vol. 1 - Planters Development Bank

APP. Q-2108.12.31GUIDELINES ON THE USE OF SCRIPLESS (RoSS) SECURITIES AS SECURITYDEPOSIT FOR THE FAITHFUL PERFORMANCE OF TRUST DUTIES(Appendix to Sec. 4405Q and Sec. 4415Q)Definition of Terms and AcronymsScripless securities and RoSS securities- refers to uncertificated securities issuedby the Bureau of the Treasury (BTr) that areunder the BTr’s Registry of ScriplessSecuritiesTrust institution - refers to an entity thatis authorized to engage in trust businessBTr - Bureau of the TreasuryRoSS - Registry of Scripless SecuritiesBSP - Bangko Sentral ng PilipinasBSP-SES - Supervision and ExaminationSector of BSPSRSO - Supervisory Reports andStudies Office of BSP-SESBSP-Accounting - Accounting Departmentof BSPGSED - Government Securities EligibleDealer of the BTrDDA - refers to the regular demanddeposit account of a bank/QB withBSP-AccountingMOR - Manual of Regulations for Non-Bank Financial InstitutionsAppropriate supervising andexamining department or responsiblesupervising and examining department -refers to the Department of Thrift Banksand Non-Bank Financial InstitutionsA. Basic Requirements1. The BSP-SES shall file with BTr anapplication to open a RoSS PrincipalSecurities Account where RoSS securitiesof trust institutions used as security depositfor trust duties shall be held. BSP-SES shalluse Annex 1 for this purpose.2. Using Annex 1-A, BSP-SES shallalso apply for a Client Securities Account(sub-account) for each trust institution underits RoSS Principal Securities Account toenable BSP-SES to keep track of thesecurity deposit. BTr shall maintain ClientSecurities Accounts for P1,000 eachmonth per account.3. A trust institution which has a DDAwith BSP-Accounting shall act as its ownsettlement bank.A trust institution which does not havea DDA with the BSP-Accounting shalldesignate a settlement bank which will actas conduit for transferring securities for trustduties to the BSP-SES account and forpaying interest, interest coupons andredemption proceeds. The trust institutionshall inform the appropriate department ofthe SES of the designation of a settlementbank.4. Each trust institution shallaccomplish an “Autodebit/AutocreditAuthorization” for its client securitiesaccount under the BSP-SES RoSS account.The document will authorize the BTr andthe BSP to credit the DDA of the trustinstitution with BSP-Accounting forcoupons/interest payments on securitiesin the BSP-SES RoSS accounts and to debitthe DDA for the monthly fees payable toBTr for maintaining its client securitiesaccounts with BSP-SES. It will also authorizeManual of Regulations for Non-Bank Financial InstitutionsQ RegulationsAppendix Q-21 - Page 1