Amendment to Unit Investment Trust Fund (UITF) Regulations

March 10, 2016 BSP CIRCULAR NO. 907-16 SUBJECT : Amendment to Unit Investment Trust Fund (UITF) Regulations The Monetary Board in its Resolution No. 359 dated 24 February 2016 approved the amendment to Subsections X410.8/4410Q.8 and X410.9/4410Q.9 of the Manual of Regulations for Banks (MORB) and Manual of Regulations for Non-Bank Financial Institutions (MORNBFI) on feeder fund and fund-of-funds. SECTION 1. Subsection X410.8/4410Q.8 are hereby amended to read as follows: "Subsection X410.8/4410Q.8. Exposure Limits. . . . xxx xxx xxx In the case of feeder fund/fund-of-funds, the exposure limit shall be applied on the target fund's underlying investments. Notwithstanding said limit, if the target fund is allowed by its respective regulatory authority to invest in units/shares of other open-ended CIS, the exposure limit prescribed by said regulatory authority shall instead apply. Furthermore, the investments in any one target fund shall not exceed ten percent (10%) of the total net asset value of the target fund. xxx xxx xxx SECTION 2. Item g(3) in Subsection X410.9/4410Q.9 is hereby amended to read as follows: "Subsection X410.9/4410Q.9. Allowable investments and valuation. UIT Fund investments shall be limited to bank deposits and the following financial instruments: xxx xxx xxx (g) Units/shares in collective investment schemes (CIS), i.e. , target fund, shall include exchange traded fund (ETF) and other CIS, subject to the following: (1) . . . (2) . . . (3) The target fund is neither structured nor similarly structured as a feeder fund or fund-of-funds; and aTHCSE (4) . . . (h) . . . xxx xxx xxx SECTION 3. This Circular shall take effect immediately. FOR THE MONETARY BOARD: (SGD.) AMANDO M. TETANGCO, JR. Governor