MORNBFI Vol. 1 - Planters Development Bank

APP. Q-4811.12.31accuracy and reliability of all valuationprocesses and data sources and ensure thatvaluations are completed as required byinternal policies and procedures andregulatory reporting standards.e. Conflicts of interests. These mayarise when the TE exercises any discretionwhere mutually opposing interests areinvolved. The most serious conflict ofinterest is self-dealing, which could includetransactions such as an investment inrelated interests of the TE or purchase ofsecurities from or through an affiliate.Such transactions must be fully disclosedand authorized in writing by clients.Because of the complexity and sensitivityof the issue, a TE must develop policies andprocedures to identify and deal with conflictsof interest situations.3. Account terminationAccounts may be terminated for avariety of reasons, including the occurrenceof a specified event or upon written noticeof either the client or the TE. The trust orinvestment management agreement shallprovide for the terms and manner ofliquidation, return and delivery of assets/portfolio to the client. Generally, the TE'sresponsibilities include distribution to theclient, the successor trustee and/orbeneficiaries of the remaining assets heldunder trusteeship/agency arrangement,preparation and filing of required reports.The TE must ensure the risk controlprocesses are observed when terminatingaccounts just as when accepting them.The TE must have a general policy withrespect to the termination of trust accounts,which policy shall take into considerationthe general processes to be observed in thereturn or delivery of different types of assets,the possible modes of distribution, fees tobe paid, taxes to be imposed, thedocumentation required to effect the transferof assets, the provision of terminal reports,and whenever applicable, the timing ofdistribution, needs and circumstances ofthe beneficiaries. Should the TE anticipatepossible issues or problems withrespect to the termination of theaccount, such as the liquidation of certainassets or the partition or division of assets,these issues shall be disclosed to the clientfor proper disposition. The policy on thetermination of trust, fiduciary andinvestment management accounts shalllikewise include the approval process tobe observed for the termination of theseaccounts as well as the reportingrequirements for accounts terminated andclosed.(Circular No. 618 dated 20 August 2008, as amended byCircular No. 721 dated 13 May 2011)Manual of Regulations for Non-Bank Financial Institutions App. Q-48 - Page 11