By LEE C. CHIPONGIAN
In a new circular, the Bangko Sentral ng Pilipinas (BSP) has set a uniform required minimum capital for trust-related businesses, specifically investment management activities (IMAs), at P300 million.
BSP Governor Amando M. Tetangco Jr. has signed Circular No. 756 which aligns the requirements for the grant of a full trust license and an investment management authority.
The circular contained the revisions to the BSP’s Manual of Regulations (MOR) pertaining to required capital and other requirements before engaging in the trust and IMA businesses.
The provisions clarified that the minimum capital requirement for IMAs of not less than P300 million is the same in the 2011 circular which approved the creation of separate trust corporations from banks. The mini¬mum capital requirement for spin-off trust corporations is set at P300 mil¬lion for companies with assets under management of P20 billion. For AUM amounting to more than P20 billion, an incremental capital will be provided and computed as a percentage of the book value of the total volume of assets under management.
The circular sets new additional requirements for the granting of in¬vestment management authorities, which is compliance with the capital-to-risk assets and ceilings on DOSRI (directors, officers, stockholders and their related interests) for the last six months prior to the application.
Linkback:
https://tubagbohol.mikeligalig.com/index.php?topic=49807.0
