April 21, 2020
SEC MEMORANDUM CIRCULAR NO. 15-20
TO | : | All Investment Companies |
Fund Managers | ||
Other Entities Dealing with Investment Companies | ||
SUBJECT | : | Rules on Investment in Financial Derivatives |
WHEREAS, Section 35 (a) of Republic Act No. 2629, or the Investment Company Act (ICA), and Section 72 of Republic Act No. 8799, or the Securities Regulation Code (SRC), vest upon the Securities and Exchange Commission the authority to make, issue, amend, and rescind rules and regulations and orders which are necessary or appropriate to the exercise of the powers conferred upon it in the ICA and the SRC;
WHEREAS, Rules 6.5, 6.8 (b), 6.8 (d) (iii) and 6.8 (h) of the Implementing Rules and Regulations of the Investment Company Act (ICA-IRR) provide for the basic rules on financial derivatives;
WHEREAS, the Commission seeks to enhance the Rules and provide specific guidelines for financial derivatives to be followed by investment companies, fund managers and other persons or entities involved therein;
WHEREAS, the Commission seeks to align the Rules with global standards and practices in order to develop the Philippine...