March 25, 2015
BSP CIRCULAR NO. 873-15
SUBJECT : Amendments to the Rules on Delivery of Securities
The Monetary Board, in its Resolution No. 414 dated 12 March 2015, approved the following amendments to the rules on delivery of securities.
SECTION 1. The provisions of Subsection X235.5 of the Manual of Regulations for Banks (MORB) and Subsection 4235Q.5 of the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI) on delivery of deposit substitute instruments are hereby amended to read as follows:
"Subsec. X235.5/4235Q.5. Delivery of Securities. —
a. Securities, warehouse receipts, quedans and other documents of title which are the subject of quasi-banking functions, such as repurchase agreements, shall be delivered to a BSP accredited securities custodian or an SEC authorized central securities depository in accordance with the guidelines set forth in Appendix 68/Q-38. The securities custodian shall hold the securities in the name of the borrower/seller, but shall keep said securities segregated from the proprietary securities account of the borrower/seller if the borrower/seller has an existing securities account with the custodian: Provided, That a bank/QB/non-bank financial institution (NBFI) authorized...
