Third Party Custodianship — Special Power of Attorney (SPA) for Investor-Clients

June 5, 2006 BSP MEMORANDUM NO. M-2006-002 TO : All Banks and Non-Bank Financial Institutions under BSP Supervision SUBJECT : Third Party Custodianship Special Power of Attorney (SPA) for Investor-Clients The Monetary Board, in its Resolution No. 581 dated 5 May 2006 approved a thirty (30) calendar day period from date of this Memorandum within which banks/non-banks will effect revisions to non-conforming SPAs issued by investor-clients to strictly conform to the limited authority provisions of Section 7 of Circular No. 524 dated 31 March 2006, subject to the following conditions: 1. The clean-up of SPAs will cover those issued by clients prior to Circular No. 524 dated 31 March 2006; HTaIAC 2. Custodians will allow transfers of securities from proprietary accounts of dealers to their omnibus principal custody accounts within the period; 3. There will be no penalties imposed for dealer-banks and accredited securities custodians that allowed non-compliant SPAs prior to Circular No. 524 dated 31 March 2006 or those issued under Circular Letter dated 4 August 2005 if corrected within the thirty day period; and 4. Non-compliance with other provisions of Circular No. 524 dated 31 March 2006 are not covered/qualified to be corrected within the thirty day period and are therefore subject to the usual penalty/sanctions under existing regulations. For information and guidance. FOR THE MONETARY BOARD (SGD.) AMANDO M. TETANGCO, JR . Governor