Guidelines that will Implement the Delivery by the Seller of Securities to the Buyer or to his Designated Third Party Custodian

August 4, 2005BSP CIRCULAR LETTERTO:All Banks and Non-Bank Financial Institutions Under BSP Supervision    SUBJECT:Guidelines that will Implement the Delivery by the Seller of Securities to the Buyer or to his Designated Third Party Custodian  Statement of Policy. Pursuant to the policy of the Bangko Sentral ng Pilipinas to promote the protection of investors in order to gain their confidence in the securities market as enunciated under Circular Nos. 392 and 428 dated 23 July 2003 and 27 April 2004, respectively, the following rules/guidelines shall be observed by banks and non-bank financial institutions (NBFI) under BSP supervision in their dealings in securities whether they are acting as seller, buyer, agent or custodian. Rule No. 1 Distinction Between a Custodian and a Registry. A securities custodian is a BSP-accredited bank or NBFI designated by the investor to perform the functions of safekeeping, holding title to the securities either in a nominee or trustee capacity, reports rendition, mark-to-market valuation, administration of dividends or interest earnings and representation of clients in corporate actions. It may also perform value added...