Amendments to Unit Investment Trust Fund (UITF) Regulations Allowing for a Unit-Paying Feature

April 20, 2015BSP CIRCULAR NO. 876-15SUBJECT:Amendments to Unit Investment Trust Fund (UITF) Regulations Allowing for a Unit-Paying Feature The Monetary Board in its Resolution No. 579 dated 8 April 2015 approved the amendments to Subsections X410.2/4410Q.2, X410.5/4410Q.5, X410.6/4410Q.6, X410.7/4410Q.7 and X410.9/4410Q.9, and Appendix 62/Q-34 of the Manual of Regulations for Banks (MORB) and Manual of Regulations for Non-Bank Financial Institutions (MORNBFI), respectively, relative to allowing the offering of UITF with unit-paying feature. SECTION 1. Subsection X410.2/4410Q.2 is hereby amended to read as follows:"Subsection X410.2/4410Q.2. Establishment of a Unit Investment Trust Fund. — Any trust entity authorized to perform trust functions may establish, administer and maintain one (1) or more UIT Funds subject to applicable provisions under this section. A UIT Fund may be allowed to operate as a 1) feeder fund, 2) fund-of-funds and/or 3) multi-class fund: Provided, That the plan rules and related documents shall state that the UIT Fund is a feeder fund, fund-of-funds, and/or multi-class fund, and provide an explanation or illustration of such structures. A UIT Fund may also be allowed...