August 18, 2016
BSP CIRCULAR NO. 920-16
SUBJECT : Personal Management Trust
The Monetary Board, in its Resolution No. 1350 dated 28 July 2016 approved the amendments to Subsections X409.9/4409Q.9 of the Manual of Regulations for Banks (MORB) and the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI), respectively, and the Financial Reporting Package for Trust Institutions to provide for the creation of the Personal Management Trust:
SECTION 1. Existing provisions under Subsections X409.9/4409Q.9 of the MORB/MORNBFI are hereby deleted and shall now read as follows:
"Subsection X409.9/4409Q.9. Personal Management Trust. — The guidelines on Personal Management Trust accounts are as follows:
a. Definition. Personal Management Trust (PMT) is a living trust 1 created by an agreement whereby the trustor conveys property or a sum of money to be managed by the trustee, as the agreement dictates, generally for the preservation of the assets or property for future use of the beneficiaries and/or to answer for their current needs. The trustor may or may not nominate third-party beneficiary/ies. The trust agreement must specify the name/s of the beneficiary/ies.
Upon effectivity of...
