QuestionsQuestions (KKP Notice)
BSP Circular No. 878 was issued following the approval of the Monetary Board through Resolution No. 509 dated 27 March 2015.
It amended the Manual of Regulations for Banks (MORB) and the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI) relative to the implementation of the PERA Act of 2008 and its PERA Rules.
Subsections X901.1/4901Q.1, X405.1/4405Q.1, and X405.5/4405Q.5 were amended.
It includes: (1) total assets under Section 28 of R.A. No. 7653 based on end-of-month total assets per balance sheet, after deducting cash on hand and amounts due from banks (including the BSP and banks abroad), plus (2) Trust Department accounts and (3) PERA accounts administered by the bank.
For quasi-banks, it uses end-of-quarter total assets under Section 28 of R.A. No. 7653 (with similar deductions), plus Trust Department accounts and PERA administered by the quasi-bank.
Yes. The amendment expressly includes PERA administered by the bank in computing the Total Assessable Assets for annual fee purposes.
Eligible government securities as security for faithful performance equivalent to at least one percent (1%) of the book value of the total volume of trust, other fiduciary and investment management assets, with a minimum amount of P500,000 at all times.
Scripless securities under the RoSS System of the Bureau of Treasury may be used, subject to the Guidelines enumerated in Appendix 34/Q-21 of the Manual.
It is separately accounted for and calculated as prescribed under Section X960/4960Q and Appendix 34a/Q-A?21a of the Manual.
In addition to the basic security deposit, the bank/institution must maintain reserves on specified categories of accounts (e.g., peso-denominated CTFs and TOFA-Others, with enumerated exceptions).
TOFA-Others reserves exclude accounts held under (1) Administratorship; (2) Bond Issues/Other Obligations under Deed of Trust or Mortgage; (3) Custodianship and Safekeeping; (4) Depository and Reorganization; (5) Employee Benefit plans Under Trust; (6) Escrow; (7) Personal Trust (testamentary or living trust); (8) Executorship; (9) Guardianship; (10) Life Insurance Trust; (11) Pre-need Plans (institutional/individual); and (12) Personal Equity and Retirement Account (PERA).
The Circular expressly excludes PERA accounts from TOFA-Others reserves, implying PERA is subject to separate treatment and/or reserve calculations consistent with the PERA framework and the Manual provisions referenced.
It takes effect fifteen (15) days following its publication in the Official Gazette or in any newspaper of general circulation in the Philippines.
It provides the definition/measurement of “total assets” used for computing annual fees, specifically as end-of-month or end-of-quarter total assets per balance sheet, with specified deductions.
It was signed by Amando M. Tetangco, Jr., then Governor of the Bangko Sentral ng Pilipinas.