Trust Fund of Pre-Need Companies

March 28, 2006BSP MEMORANDUMTO  :All Banks and Other Financial Intermediaries Performing Trust, Other Fiduciary Business and Investment Management Activities   SUBJECT : Trust Fund of Pre-Need Companies Pursuant to Section 80 of Republic Act No. 8791, otherwise known as "The General Banking Law of 2000", the Monetary Board, in its Resolution No. 279 dated 02 March 2006, approved the issuance of the rules and regulations that shall govern the acceptance, management and administration of the trust funds of Pre-Need Companies by banks and other entities authorized to perform trust and other fiduciary functions, as follows:SECTION 1. Administration of Trust Fund. — In line with the policy of providing greater protection to pre-need planholders, prudential measures are hereby laid out in the administration of trust funds of Pre-Need Companies. The trust fund, inclusive of earnings, shall be administered and managed by the trustee with the skill, care, prudence and diligence necessary under the circumstances then prevailing that a prudent man, acting in the same capacity and familiar with such matters, would exercise in the conduct of an...