QuestionsQuestions (BSP CIRCULAR LETTER NO. CL-2011-083)
It informs stakeholders that a specific Bangko Sentral Registration Document (BSRD) has been reported lost, states that a replacement has been applied for, and directs that the lost BSRD should not be honored if found and presented for purchase of foreign exchange for certain remittances.
BSRD No. A010337-0000 dated 9 March 2005, covering the registration of the foreign investment of AIG Asian Opportunity Fund L.P. (Cayman Islands) in Series B Convertible Notes issued by Rustan Supercenters, Inc.
The circular was signed by (SGD.) Wilhelmina C. MaalaIac, Managing Director.
A BSRD is a documentary requirement used in connection with the BSP registration of foreign investments and is used to support foreign exchange transactions, including repatriation of principal/capital and remittance of interest/earnings.
It should not be honored for purposes of purchase of foreign exchange for repatriation of principal/capital or remittance of interest/earnings.
Purchase of foreign exchange for repatriation of principal/capital and for remittance of interest/earnings.
It cites Section 40 of the Manual of Regulations on Foreign Exchange Transactions, as amended by BSP Circular No. 698 dated 5 November 2010.
In this context, it relates to the conditions/documentary requirements for purchasing foreign exchange to enable remittances such as repatriation of principal/capital and remittance of interest/earnings.
By stating that the lost BSRD should not be honored if found and presented, it prevents the document from being used to obtain foreign exchange for remittances that would otherwise be supported by a valid BSRD.
It signals that the foreign investor/issuing party is seeking issuance of a replacement document and that the replacement is the document that should be relied upon for future foreign exchange purchases for the covered remittances.
The bank must not honor the lost BSRD for the specific covered remittance purposes (repatriation of principal/capital and remittance of interest/earnings).
The circular expressly limits its directive to those FX purchase transactions under the referenced Section 40; it does not necessarily address other uses of the document outside the specified FX remittance context.
Because the lost document could be in unauthorized hands, and without BSP guidance it could be used to claim rights for FX remittances; the circular creates a clear rule to prevent improper or fraudulent claims.
Regulators treat registration documents as control instruments; when a document is reported lost, the regulator can suspend its acceptability and require reliance on validated replacements.
Adopted on 25 October 2011; “Date Filed” is 26 January 2012, indicating when it was submitted for filing/publication in the Official Gazette (or relevant records), not when it became effective.