BSP Circular No. 1220 (Series of 2025) updates the rules on access to Bangko Sentral securities by Unit Investment Trust Funds (UITFs). The key change: PERA UITFs are excluded from the 10% non-resident limit, recognizing that Overseas Filipinos may be treated as non-residents under existing rules.
Key Changes
- PERA UITFs are excluded from the 10% non-resident limit for UITFs participating in the secondary market for BSP Securities.
- Non-resident cap still applies to other UITFs: the share of net assets of non-residents must not exceed 10%.
- Periodic reporting requirement for trust entities remains in place for non-resident participation.
- Updated letter of undertaking in Annex B of Appendix 82 (MORB) and Annex B of Appendix Q-48 (MORNBFI) to reflect the PERA UITF exclusion.
Who Is Affected
- Trust entities offering UITFs that participate in the secondary market for BSP Securities.
- PERA UITFs that include Overseas Filipinos or other participants treated as non-residents.
- Compliance officers responsible for BSP Securities Facility (BSP-SF) access and reporting.
Effective Date & Transition
The circular takes effect 15 calendar days after publication in the Official Gazette or a newspaper of general circulation.
Compliance Actions Checklist
- Identify PERA UITFs and confirm exclusion from the 10% non-resident limit.
- Validate non-resident exposure for non-PERA UITFs to ensure the 10% cap is met.
- Update internal policies and monitoring controls for non-resident participation.
- Submit periodic reports on non-resident funds to the BSP as required.
- Update the letter of undertaking to reflect the revised wording in the MORB and MORNBFI annexes.
- Prepare to furnish documents requested by BSP to verify ongoing compliance.
FAQs
Does the 10% non-resident limit still apply to all UITFs? No. The limit continues to apply to UITFs with non-resident participants, except PERA UITFs, which are now excluded from the cap.
Why were PERA UITFs excluded? The amendment recognizes that PERA participants may include Overseas Filipinos who are treated as non-residents under existing rules, and the policy aligns with PERA’s objectives.
What reporting obligations remain? Trust entities must still submit periodic reports on non-resident funds and provide documents requested by BSP to verify compliance.
Related Links
- Regulator hub: /regulations/bsp
- Topic hub: /regulations/topics/capital-markets
- Ask CHD: /chat (Ask CHD about this regulation)