Pursuant to Monetary Board Resolution No. 703 dated 06 May 2011, Section III.A.2.(1).a of Appendix 83 and Appendix Q-48 of the Manual of Regulations for Banks (MORB) and Manual of Regulations for Non-Bank Financial Institutions (MORNBFI), respectively, are hereby amended to read as follows:

œ(1) Account opening process.  x  x  x

œa.AS A GENERAL RULE, Client profiling shall be performed for all UIT Fund and regular trust, other fiduciary and investment management accounts via a duly acknowledged Client Suitability Assessment (CSA), which aims to provide the TE with information leading to the prudent design of investment packages, suited to a particular client or investment account. THE CSA, HOWEVER, SHALL NOT BE REQUIRED FOR THE FOLLOWING TRUST AND OTHER FIDUCIARY ACCOUNTS:

(I) COURT TRUST,
(II) LEGISLATED AND QUASI-JUDICIAL TRUST,
(III) TRUST UNDER INDENTURE,
(IV) FACILITY/LOAN AGENCY,
(V) TRANSFER AGENCY,
(VI) DEPOSITORY AND REORGANIZATION,
(VII) ESCROW,
(VIII) CUSTODIANSHIP,
(IX) SAFEKEEPING, AND
(X) INSTITUTIONAL TRUST - PRE-NEED PLANS.

The profiling process, to be documented through a CSA Form signed by the concerned parties, shall be undertaken on a per client basis, which shall emphasize the level of risk tolerance of the client.

x  x  x 

This Circular shall take effect fifteen (15) days following its publication either in the Official Gazette or in a newspaper of general circulation.


Adopted: 13 May 2011


FOR THE MONETARY BOARD:

(SGD.) AMANDO M. TETANGCO, JR.
Governor