[ad_1]
The Monetary Board, the policy-making body of Bangko Sentral ng Pilipinas, expanded the distribution channels from trust companies to unit investment trust funds to further develop capital markets. UITFs are turnkey investments that allow the pooling of funds from different investors with similar investment objectives. These funds are managed by professional managers and are invested in various financial instruments, such as money market securities, bonds and stocks, that offer higher returns than traditional bank deposit products. BSP Governor Benjamin Diokno said on Wednesday that the board approved guidelines that allow trust corporations to distribute their UITFs through third parties, specifically individual and institutional agents. Diokno said this was in support of the BSP’s advocacy to promote financial inclusion by expanding access points to innovative financial products and services. “Through this policy, agents are expected to bring products closer to investors. At the same time, it is an opportunity for the industry to grow assets under management through partnerships with distributors, ”he said. “More products on the market will also augur well for capital market development,” Diokno said. Trust corporations distribute UITF through their main offices. Therefore, the rules provide other channels that trust corporations can use to offer their products.
Diokno said third-party vendors must meet strict qualification standards to qualify as distributors. Individual agents and employees of institutional agents must meet the qualifications for UITF marketing personnel in existing regulations, while institutional agents must be accredited and duly licensed by the appropriate regulatory agencies to distribute financial products. The provisions of the next policy are based on the governance mechanisms and due diligence requirements in the existing outsourcing framework for BSP supervised institutions. “These ensure that the TC [trust corporations] It will only turn to entities that have a solid understanding of UITFs and are well regulated and have the necessary infrastructure to distribute UITFs, ”said Diokno. He said that this development was part of the set of reforms being carried out by the Bangko Sentral to promote the growth of the trust industry. The BSP is set up to renew the regulatory framework for trusts, investment management, and other trust accounts by clearly setting expectations for the different activities carried out by trust entities and streamlining regulatory requirements.
COMMENT DISCLAIMER: Readers’ comments posted on this website are in no way endorsed by The Standard. Comments are the opinions of thestandard.ph readers exercising their right to free expression and do not necessarily represent or reflect the position or point of view of thestandard.ph. While this publication reserves the right to remove comments that are deemed offensive, indecent or inconsistent with The Standard’s editorial standards, The Standard is not responsible for any false information posted by readers in this comment section.
[ad_2]