MORNBFI Vol. 1 - Planters Development Bank

APP. Q-4811.12.31a description of the following:i. Investment objective;ii. Investment strategy-indicating howassets will be allocated indicating theagreed portfolio mix;iii. Investment performance review –indicating proposed market benchmarks, ifany and the desired frequency of theperformance review/reporting;iv. Investment limits – identifies anylimitation which the client may have for theportfolio such as investment restrictions (e.g.,prohibited investments) and client’s consentfor taking losses.For UIT Fund, the IPS is equivalent tothe investment objective of the fundspecifically stated in the Declaration of Trust.• Option of client to re- classificationGenerally, the TE shall recommend theinvestment product/portfolio/strategysuitable to the client based on the resultsof the CSA. The TE may, however, providea process for allowing clients to invest ininvestment products/ portfolio/strategy witha higher risk than those corresponding tothe CSA profile results. A client whoexercises the option to be re-classifiedoutside the CSA process thereby waivessome of the protection afforded by theseguidelines. Such re-classification may beallowed subject to the observance of thefollowing:i. The client shall state in writing tothe TE that -• He does not agree with or acceptthe recommendation of the TE on theinvestment product/portfolio/strategyappropriate to the client’s profile based onthe results of the CSA;• He would like to avail of theinvestment product/portfolio/strategy otherthan that which is consistent with the resultsof the CSA;• He requests/intends to be reclassified,either generally or in respect toa particular investment/service/ transaction/product; and• He fully understands and is willingto take the risks incidental to the investmentproduct/portfolio/strategy to be availed of.ii. The TE shall issue a clear writtenwarning to the client of the protections hemay lose and conversely, of the risks thathe is exposed to.iii. The TE shall have taken allreasonable steps to ensure that the clientmeets all relevant requirements as providedfor in the TE’s written policies.• Frequency of CSA and IPSi. The CSA shall be performed andthe IPS shall be formulated and executedprior to the opening of the account;ii. The TE shall update the CSA andthe IPS at least every three (3) years exceptin the following instances;• Whenever updates arenecessitated by the client, upon notice/advise to the TE, on account of a change inpersonal/financial circumstances orpreferences, the TE shall adjust/modify itsinvestment strategy/portfolio andrecommendation, subject to the conformityof the client;• Whenever managed trust, otherfiduciary, and investment managementaccounts express intention to invest incomplex investment products such asfinancial derivatives, the TE shall ensurethat the CSA and the IPS are updated atleast annually. Otherwise, the TE shall notmake new/additional investments incomplex investment products.iii. The TE shall ensure that periodicwritten notices given to clients remindingthem of such updates are received/acknowledged by clients or theirauthorized representatives;iv. Updated CSA and IPS shall beacknowledged by the client;v. The frequency of review shall beincluded as a provision in the writtenagreement; andvi. The latest CSA and IPS willcontinue to be applied for any subsequentprincipal contributions to the account, untilthese are amended or updated by the client.App. Q-48 - Page 4Manual of Regulations for Non-Bank Financial Institutions