Guidelines on the Method of Determining Compliance with the Required Basic Security Deposit during the Transition Period 1 of Spun-off Trust Department to Trust Corporation
BSP Circular No. 962-17 outlines the guidelines for determining compliance with the required basic security deposit during the transition period from a spun-off Trust Department to a Trust Corporation. It mandates that the spun-off trust department maintains a security deposit of 1% of its previous end-of-day balance, while the new trust corporation must hold either PHP 500,000 or 0.05% of its prior balance. Weekly compliance reports are required to be submitted to the Bangko Sentral ng Pilipinas (BSP). After the transition, the trust corporation will continue to maintain the same deposit requirements until one calendar quarter of operations, after which it will adhere to standard regulations. The Circular takes effect 15 days after publication in the Official Gazette or a widely circulated newspaper.
Quick Answers
- What is Guidelines on the Method of Determining Compliance with the Required Basic Security Deposit during the Transition Period 1 of Spun-off Trust Department to Trust Corporation about?
- BSP Circular No. 962-17 outlines the guidelines for determining compliance with the required basic security deposit during the transition period from a spun-off Trust Department to a Trust Corporation. It mandates that the spun-off trust department maintains a security deposit of 1% of its previous end-of-day balance, while the new trust corporation must hold either PHP 500,000 or 0.05% of its prior balance. Weekly compliance reports are required to be submitted to the Bangko Sentral ng Pilipinas (BSP). After the transition, the trust corporation will continue to maintain the same deposit requirements until one calendar quarter of operations, after which it will adhere to standard regulations. The Circular takes effect 15 days after publication in the Official Gazette or a widely circulated newspaper.
- What type of law is BSP Circular No. 962-17?
- Guidelines on the Method of Determining Compliance with the Required Basic Security Deposit during the Transition Period 1 of Spun-off Trust Department to Trust Corporation (BSP Circular No. 962-17) is a Philippine Other Rules and Procedures enacted by the Congress of the Philippines.
- When was Guidelines on the Method of Determining Compliance with the Required Basic Security Deposit during the Transition Period 1 of Spun-off Trust Department to Trust Corporation enacted?
- Guidelines on the Method of Determining Compliance with the Required Basic Security Deposit during the Transition Period 1 of Spun-off Trust Department to Trust Corporation (BSP Circular No. 962-17) was enacted on Jun 8, 2017.
- What is the citation for Guidelines on the Method of Determining Compliance with the Required Basic Security Deposit during the Transition Period 1 of Spun-off Trust Department to Trust Corporation?
- Guidelines on the Method of Determining Compliance with the Required Basic Security Deposit during the Transition Period 1 of Spun-off Trust Department to Trust Corporation, BSP Circular No. 962-17, Jun 8, 2017 (Philippines)
Law Information
- Reference Number
- BSP Circular No. 962-17
- Date Enacted
- Category
- Other Rules and Procedures
- Subcategory
- Banks and Banking
- Jurisdiction
- Philippines
- Enacting Body
- Congress of the Philippines
Full Law Text
June 8, 2017
BSP CIRCULAR NO. 962-17
| SUBJECT | : | Guidelines on the Method of Determining Compliance with the Required Basic Security Deposit during the Transition Period 1 of Spun-off Trust Department to Trust Corporation |
The Monetary Board in its Resolution No. 855 dated 25 May 2017 approved the amendment to Section 4905T of the Manual of Regulations for Non-Bank Financial Institutions-T Regulations (MORNBFI-T) on the transitory provision providing the method of determining compliance with the required basic security deposit during the transition period of the spun-off Trust Department to Trust Corporation.
Section 4905T of the MORNBFI-T Regulations is hereby amended to add Subsection 4905T.1 to read as follows:
"Subsection 4905T.1. Compliance with the required basic security deposit during and after transition period. —
a. During transition period
(1) Spun-off trust department shall maintain basic security deposit equivalent to 1% of its previous end-of-day balance of total trust, investment management, and other fiduciary assets;
(2) The newly established trust corporation shall maintain basic security deposit equivalent to the higher of P500,000.00 or 0.05% of the previous end-of-day balance of total trust, investment management, and other fiduciary assets; and
(3) A weekly report on the daily compliance with the required basic security deposit shall be submitted to the Bangko Sentral ng Pilipinas (BSP) by the first business day following the reference calendar week (Monday to Sunday).
b. After the transition period
(1) The newly established trust corporation shall maintain basic security deposit equivalent to the higher of P500,000.00 or 0.05% of the balance of the total trust, investment management, and other fiduciary assets as of the end of transition period until one calendar quarter of operations; and
(2) Thereafter, the trust corporation shall maintain the required basic security deposit under Subsection 4112T.3 of the MORNBFI-T.
The trustee or fiduciary shall have 10 calendar days after end of day from the start of the transition period until one calendar quarter of operation after end of the transition period within which to deposit with the BSP the additional securities to comply with the required securities.
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.) DIWA C. GUINIGUNDOOfficer-in-Charge
Footnotes
1. The period where both the trust department and trust corporation simultaneously operate for smooth transfer of business operation.
Cite This Law
Guidelines on the Method of Determining Compliance with the Required Basic Security Deposit during the Transition Period 1 of Spun-off Trust Department to Trust Corporation, BSP Circular No. 962-17, Jun 8, 2017 (Philippines)
Guidelines on the Method of Determining Compliance with the Required Basic Security Deposit during the Transition Period 1 of Spun-off Trust Department to Trust Corporation, BSP Circular No. 962-17 (Phil. 2017)
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