October 21, 2014
BSP CIRCULAR NO. 852-14
SUBJECT : Amendments to Unit Investment Trust Fund (UITF) Regulations
The Monetary Board in its Resolution No. 1525 dated 25 September 2014 approved the following amendments to Sections X410 and 4410Q of the Manual of Regulations for Banks (MORB) and Manual of Regulations for Non-Bank Financial Institutions (MORNBFI), respectively, to enhance the disclosure requirements of UITFs and clarify certain features of the target fund of a fund-of-funds/feeder fund UITF.
SECTION 1. Subsection X410.7/4410Q.7 are hereby amended to read as follows:
"Subsection X410.7/4410Q.7. Minimum disclosure requirements. —
a. KEY INFORMATION AND INVESTMENT DISCLOSURE STATEMENT. THIS DOCUMENT SHALL CONTAIN THE KEY FEATURES AND THE prospective and outstanding investments OF A UIT FUND. IT SHALL USE PLAIN LANGUAGE PRESENTED IN A CONCISE MANNER, AND SHALL COMPLY SUBSTANTIALLY WITH THE FORMAT PRESCRIBED IN APPENDIX 62/Q-34. THIS DOCUMENT SHALL BE UPDATED AND MADE AVAILABLE TO PARTICIPANTS AT LEAST EVERY CALENDAR QUARTER THEREOF.
For investments of feeder funds/fund-of-funds, the trustee shall likewise make available to all UIT Fund clients all relevant information on the target fund/s.
b. Distribution of investment...
