Reforms seen to boost fund management industry - BusinessWorld Online

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THE BANGKO SENTRAL ng Pilipinas (BSP) on Thursday said it is pursuing several reforms, including a simplified licensing framework for unit investment trust funds (UITFs) to support the fund and asset management sector. READ:

Pilipinas on Thursday said it is pursuing several reforms,framework for unit investment trust funds to support the fund and asset management sector.

“One way of doing so is through our Trust Business Model initiative, wherein we pursue several reforms that enable fund managers to enhance their operations and realize their goals,” Mr. Medalla said. The BSP, in its Manual of Regulations for Banks, defines UITFs as an open-ended trust funds that could be in peso or other acceptable currency. These are operated and administered by a trust entity. These could include money market funds, bond funds, balanced funds, and equity funds, among others.

The first phase of the initiative involved the reduction in the minimum required amount for investment management accounts, as well as the expansion of financial instruments suitable for commingled funds.The latest amendments to UITF regulations were made via a circular last September 2022, wherein the central bank required trust entities to secure its approval or notify it before creating selected kinds of UITFs.

 

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