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(NAR) VOL. 22 NO. 2, APRIL - JUNE 2011

[ BSP CIRCULAR NO. 721, S. 2011, May 13, 2011 ]

AMENDMENTS TO THE MANUAL OF REGULATIONS FOR BANKS (MORB) AND MANUAL OF REGULATIONS FOR NON-BANK FINANCIAL INSTITUTIONS (MORNBFI) ON THE EXEMPTION OF CERTAIN TRUST/OTHER FIDUCIARY ACCOUNTS FROM THE CLIENT SUITABILITY ASSESSMENT (CSA) REQUIREMENT



Pursuant to Monetary Board Resolution No. 703 dated 06 May 2011, Section III.A.2.(1).a of Appendix 83 and Appendix Q-48 of the Manual of Regulations for Banks (MORB) and Manual of Regulations for Non-Bank Financial Institutions (MORNBFI), respectively, are hereby amended to read as follows:

“(1) Account opening process.  x  x  x

“a.AS A GENERAL RULE, Client profiling shall be performed for all UIT Fund and regular trust, other fiduciary and investment management accounts via a duly acknowledged Client Suitability Assessment (CSA), which aims to provide the TE with information leading to the prudent design of investment packages, suited to a particular client or investment account. THE CSA, HOWEVER, SHALL NOT BE REQUIRED FOR THE FOLLOWING TRUST AND OTHER FIDUCIARY ACCOUNTS:

(I) COURT TRUST,
(II) LEGISLATED AND QUASI-JUDICIAL TRUST,
(III) TRUST UNDER INDENTURE,
(IV) FACILITY/LOAN AGENCY,
(V) TRANSFER AGENCY,
(VI) DEPOSITORY AND REORGANIZATION,
(VII) ESCROW,
(VIII) CUSTODIANSHIP,
(IX) SAFEKEEPING, AND
(X) INSTITUTIONAL TRUST - PRE-NEED PLANS.

The profiling process, to be documented through a CSA Form signed by the concerned parties, shall be undertaken on a per client basis, which shall emphasize the level of risk tolerance of the client.

x  x  x”

This Circular shall take effect fifteen (15) days following its publication either in the Official Gazette or in a newspaper of general circulation.


Adopted: 13 May 2011


FOR THE MONETARY BOARD:

(SGD.) AMANDO M. TETANGCO, JR.
Governor
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