Reportorial Requirements on Personal Equity and Retirement Account (PERA)

May 22, 2015 BSP CIRCULAR NO. 880-15 SUBJECT : Reportorial Requirements on Personal Equity and Retirement Account (PERA) The Monetary Board in its Resolution No. 509 dated 27 March 2015 approved the amendments to Section 4192Q/4162N of the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI); Subsection X191.2 of the Manual of Regulations for Banks (MORB); and Subsection X425.2/4425Q.2 and Appendix 6/Q-3 and N-1 of the MORB/MORNBFI, respectively, relative to the implementation of PERA Act of 2008 and PERA Rules. BSP-supervised financial institutions engaging in PERA-related activities shall include in their periodic reports to BSP the results of their PERA operations. Amendments to the Financial Reporting Package for Banks (FRP), Simplified Financial Reporting Package for Rural and Cooperative Banks (SFRP), Financial Reporting Package for Trust Institutions (FRPTI), and Consolidated Statement of Condition (CSOC) for Quasi-Banks/Non-Bank Financial Institutions will ensure proper reporting of PERA-related activities and reflect proper segregation of PERA assets. SECTION 1. The Financial Reporting Package (FRP) prescribed under Subsection X191.2 of the MORB is hereby amended to revise the (a) Contingent Accounts, (b) Line Item Instructions, and (c) specific reporting templates of Financial Reporting Package for Banks (FRP) and Simplified Financial Reporting Package for Rural and Cooperative Banks as follows: a. Contingent Accounts "xxx xxx xxx "9. Others (a) Late Deposit/Payment Received . . . xxx xxx xxx (e) Securities Held under Custodianship by Bank Proper . . . (i) PERA Securities Held Under Custodianship by Bank Proper This refers to securities held under PERA Custody agreement by the Bank Proper under the PERA Act of 2008. xxx xxx xxx (i) Trust Department Accounts This refers to the total accountabilities of the bank from its trust operations. (i) Securities Held under Custodianship by Trust Department . . . (i.a) PERA Securities Held Under Custodianship by Trust Department This refers to securities held under PERA Custody agreement by the Bank's Trust Department under the PERA Act of 2008. (ii) PERA Assets Administered by Trust Department This refers to all assets held by Bank's Trust Department as PERA Administrator under the PERA Act of 2008. (j) PERA Assets Administered by Bank Proper This refers to all assets held by Bank Proper as PERA Administrator under the PERA Act of 2008. (k) Other Contingent Accounts This refers to the items which cannot be appropriately classified under any of the foregoing contingent accounts. b. Line Item Instructions "xxx xxx xxx "Schedule 22 Deposit Liabilities Classified as to Type of Deposit xxx xxx xxx Additional Information (1) Savings Deposit with Automatic Transfer Report the amount of savings deposits with automatic transfer to demand deposit arrangement. (2) Non-Taxable Report the amount of non-taxable deposits. (a) Personal Equity and Retirement Account Report the amount of deposits that are eligible PERA Investment Products covered by the PERA Act of 2008. (b) Other Non-taxable Report the amount of non-taxable deposits which are not covered by the PERA Act of 2008. "xxx xxx xxx "Schedule 25 Bonds Payable, Unsecured Subordinated Debt and Redeemable Preferred Shares xxx xxx xxx Additional Information (1) Taxable Report the amortized cost of taxable bonds payable and unsecured subordinated debt. (2) Personal Equity and Retirement Account Report the amortized cost of non-taxable bonds payable and unsecured subordinated debt that are eligible PERA Investment Products covered by the PERA Act of 2008. "xxx xxx xxx "Schedule 38 Off Balance Sheet Report the amount of the indicated contingent accounts as defined in the Manual of Accounts. "Schedules 38a, 38a1, 38a3 and 38a4 Report by the PERA Administrator on Personal Equity and Retirement Account Report the total PERA assets and accountabilities of the PERA Administrator under the appropriate columns. For these particular schedules, the accounts as defined in the Manual of Accounts of the Financial Reporting Package for Trust Institutions shall be used. Additional Information (1) Total Number of Personal Equity and Retirement Accounts Report the total number of PERA under the appropriate columns. (2) Total Number of Contributors Report the total number of Contributors. (a) Total Number of Contributors who are Overseas Filipinos (OFs) (i) Number of Accounts Report the total number of PERA owned by overseas Filipinos. (ii) Total Assets Report the total carrying amount of PERA assets owned by overseas Filipinos. Overseas Filipinos are defined under the PERA Act of 2008 and its implementing rules and regulations. (b) Total Number of Contributors who are non-OFs (i) Number of Accounts Report the total number of PERA owned by non-overseas Filipinos. (ii) Total Assets Report the total carrying amount of PERA assets owned by non-overseas Filipinos. (3) Basic Security Deposit Report the value of security/ies for the faithful performance of PERA Administrator as prescribed under Section X960/4960Q and Appendix 34a/Q-21a of the Manual of Regulations for Banks (MORB) and Manual of Regulations for Non-Bank Financial Institutions (MORNBFI), respectively. "xxx xxx xxx c. Reporting templates The reporting templates of the FRP (Annex A) for schedules 22, 25, 38, 38a, 38a1, 38a3 and 38a4; and the SFRP (Annex B) schedules 22, 25, 38, and 38a1 are revised to include the PERA-related activities of banks. SECTION 2. The Financial Reporting Package for Trust Institutions (FRPTI) prescribed under Subsection X425.2/4425Q.2 of the MORB/MORNBFI is hereby amended to revise the (a) Contractual Relationships of Trust Institutions, (b) Line Item Instructions, and (c) specific reporting templates of the FRPTI as follows: a. Contractual Relationships of Trust Institutions "xxx xxx xxx "II. Other Fiduciary Services This refers to trust/agency agreements other than those classified under Item I wherein the trust institution may act as the depository of the assets and properties and shall manage the same in accordance with the provisions of the trust agreement. This shall be comprised of the following: "xxx xxx xxx "(7) Custodianship . . . (a) PERA Custodianship This refers to custody agreement between the trust institution and the PERA Contributor as prescribed under the Personal Equity and Retirement Account (PERA) Act of 2008. "xxx xxx xxx "(10) PERA Administratorship This refers to administration agreement between the trust institution and the PERA Contributor as prescribed under the Personal Equity and Retirement Account (PERA) Act of 2008. (11) Others This refers to other fiduciary services, which cannot be appropriately classified under any of the foregoing accounts. "xxx xxx xxx "IV. Advisory/Consultancy This refers to an engagement where trust institutions offer advisory/consultancy services primarily aimed to create wealth either through investments or other vehicles. Trust institutions offering advisory/consultancy services are presumed to possess the expertise on technical areas such as but not limited to tax, estate and retirement planning. Advisory/Consultancy services exclude execution, settlement and account administration of advised transaction unless covered by a separate engagement established for such purpose. This also covers the investment management (advisory) agreement between a PERA Contributor and his designated Investment Manager (Advisor). "xxx xxx xxx b. Line Item Instructions "xxx xxx xxx "Schedules E1, E1a and E1b Other Fiduciary Services Unit Investment Trust Fund (UITF) "xxx xxx xxx "Schedules E2, E2a and E2b Report by the PERA Administrator on Personal Equity and Retirement Account Report the total PERA assets and accountabilities of the PERA Administrator under the appropriate columns. Additional Information (1) Total Number of Personal Equity and Retirement Accounts Report the total number of PERA under the appropriate columns. (2) Total Number of Contributors Report the total number of Contributors. (a) Total Number of Contributors who are Overseas Filipinos (OFs) (i) Number of Accounts Report the total number of PERA owned by overseas Filipinos. (ii) Total Assets Report the total carrying amount of PERA assets owned by overseas Filipinos. Overseas Filipinos are defined under the PERA Act of 2008 and its implementing rules and regulations. (b) Total Number of Contributors who are non-OFs (i) Number of Accounts Report the total number of PERA owned by non-overseas Filipinos. (ii) Total Assets Report the total carrying amount of PERA assets owned by non-overseas Filipinos. (3) Basic Security Deposit Report the value of security/ies for the faithful performance of PERA Administrator as prescribed under Section X960/4960Q and Appendix 34a/Q-21a of the Manual of Regulations for Banks (MORB) and Manual of Regulations for Non-Bank Financial Institutions (MORNBFI), respectively. "xxx xxx xxx c. Reporting templates The reporting templates of the FRPTI (Annex C) for the Main Report, Income Statement and schedules A1, A2, E, E2, E2a and E2b are revised to include the PERA-related activities of trust entities. SECTION 3. Section 4192Q/4162N of the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI) is also amended to revise the reporting template of the Consolidated Statement of Condition (CSOC) (Annex D) to reflect the PERA assets administered by the quasi-banks/non-bank financial institutions. SECTION 4. Appendices 6/Q-3 and N-1 of the MORB/MORNBFI on list of reports required from banks/quasi-banks and non-bank financial institutions, respectively, are amended to include the Report by the Personal Equity and Retirement Account (PERA) Administrator as follows: Category Schedule Frequency Submission Deadline For Banks Schedules (Solo Report) A-1 Schedules 38a, 38a1, Quarterly 15 banking days after end of 38a3 and 38a4 reference quarter Schedules (Consolidated Report) A-1 Schedules 38a Quarterly 30 banking days after end of reference quarter For Trust Institutions A-2 Schedules E2, E2a Quarterly 20 banking days after end and E2b of reference quarter SECTION 5. The dissemination of revised schedules of the FRP, SFRP, FRPTI and CSOC shall be covered by a separate memorandum issuance. BSP-supervised financial institutions shall adopt the revised reporting templates effective reporting period ending 30 June 2015. SECTION 6. Effectivity. This Circular shall take effect fifteen (15) days following its publication in the Official Gazette or in any newspaper of general circulation in the Philippines. FOR THE MONETARY BOARD: (SGD.) AMANDO M. TETANGCO, JR. Governor Attachments available upon request.