Question & AnswerQ&A (SEC ICA RULE 35-1)
The minimum subscribed and paid-up capital required is at least P50 million, although the Commission may grant a lower paid-up capital requirement for a group of investment companies under the same management upon request.
All members of the Board of Directors must be Filipino citizens.
No, installment sales are expressly prohibited. Securities sold by an investment company shall be on a cash basis.
They shall not be allowed to sell, transfer, convey, encumber or otherwise dispose of their shares/securities within twelve (12) months from registration of the investment company.
The maximum investment shall not exceed an amount equivalent to ten percent (10%) of the investment company’s net asset value.
Investment companies shall not sell securities short or invest in margin purchased securities (except partly paid shares), commodity futures contracts, precious metals, or unlimited liability investments.
Only a commercial bank of good repute duly authorized by the Bangko Sentral ng Pilipinas to perform trust functions can act as custodian.
They must submit a monthly report under oath executed by the Treasurer or other officer showing total amount received from sale of shares, total redemptions, numbers of shares outstanding at the beginning and end of the month, shares sold and redeemed during the month, and percentage of outstanding shares owned by Filipinos.
The Commission may impose administrative sanctions including suspending registration, requiring corrective disclosures, suspending redemption of securities, or other penalties as provided by law.