MORNBFI Vol. 1 - Planters Development Bank

APP. Q-4708.12.31GUIDELINES FOR TRUST DEPARTMENTS’ PLACEMENTS IN THE SPECIALDEPOSIT ACCOUNT FACILITY OF THE BANGKO SENTRAL(Appendix to Subsec. 4409Q.2)The following are the guidelinesgoverning the trust deparments’ placementsin the SDA facility of BSP.1. Access to the subject BSP facilityshall be granted upon receipt by the BSPTreasury Department (BSP-TD) of a letterof request (Appendix 78 Annex 1) foraccount opening together with the followingrequirements:a. Internal approvals allowing the trustdepartment to invest in the BSP SDAfacility;b. A list of authorized signatories;c. A list of authorized traders; andd. Contact details for the front and backoffices.2. The trust department shall use adepository institution that is a PhilPASSmember when placing its funds in the SDAfacility. On transaction date, the trustdepartment shall instruct said depositoryinstitution to debit their account in favor oftheir SDA with the BSP. Similarly, the trustdepartment shall specify a PhilPASSmember to which its principal and interestwill be credited at maturity of the SDAplacement.3. Trading hours shall be from I0:00am to 3:00 pm for all business days. Alltrades shall settle on trade date.4. Applicable tenors and pricing shallbe based on published rates (i.e., inBloomberg’s CBPHI and Reuters BANGKOpage).5. The existing tiering scheme, asdetailed below shall be applied to the SDAplacements of the trust departmentsseparately from the placements of their bankproper.Tier Tiered RateAmounts less than or BSP published rateequal to P5.0 billionTier Tiered RateAmounts in excess of BSP published rate lessP5.0 billion up to 2%PI0.0 billionAmounts in excess of BSP published rate lessPI0.0 billion 4%6. The minimum placement is P10.0million with the additional amounts inincrements of PI .0 million.7. Trust departments may place onlyonce per tenor per day8. Trust departments may preterminatetheir SDA placements, either fullyor partially. If the holding period of the SDAplacement when it is rate pre-terminated isless than fifty percent (50%) of the originaltenor of the said placement, the applicableinterest rate for the pre-terminated amount willbe the rate dealt on value date less two percent(2%) p.a. If the holding period is fifty percent(50%) or more of the original tenor, theapplicable interest rate for the pre-terminatedamount will be the rate dealt on value dateless one percent (1%) p.a. The pre-terminationrate shall apply only to the amount preterminated.9. The income from the SDA is subjectto a twenty percent (20%) final withholdingtax10. Depository institution shallgenerally follow the existing settlementprocess for SDA placements with BSP ofQBs. The trust department will be requiredto send the transaction confirmation directlyto the BSP-TD back office. A sampleconfirmation is attached as Appendix Q-47Annex 1 and Annex 2.11. Trust departments may request astatement from the BSP-TD for theiroutstanding SDA placement as of a specifieddate.(M-2007-011 dated 08 May 2007)Manual of Regulations for Non-Bank Financial Institutions Q RegulationsAppendix Q-47 - Page 1