BSP tightens disclosure on trust funds

MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) has tightened its rules on opening multi-class unit investment trust funds (UITF), revising disclosure requirements and allowable investments and valuation.

New rules include submitting key information and investment disclosure statement, distribution of investment units, and evidence of participation, said BSP governor Amando Tetangco, Jr in a statement released on Sunday, October 26. 

Multi-class UITFs are trust funds with more than one class of units which can be differentiated based on the level of trustee fees and expenses, minimum participation, minimum holding period, and target participants, according to the BSP.

“The creation of the multi-class UITF is expected to promote operational efficiency by eliminating the need to create separate UITFs with different fee structures but with the same objectives and strategies,” said Tetangco in a statement.

Tetangco also urged UITFs by posting their nformation through their website.

Currently, the BSP only requires UITFs single fee structure, minimum participation, minimum holding period, and documents showing target participants.

The new regulation comes after BSP’s monetary board issued a circular on September 25.

“(They) are in line with the thrust of the Bangko Sentral ng Pilipinas to implement regulatory reforms that promote a more efficient and transparent financial market environment,” said Tetangco. ­–Rappler.com