Amendments to the Guidelines on the Basic Security Deposit Requirement

BANGKO SeNrRaL No PII.IpINAS OFFICE OF THE GOVERNOR CIRCULAR NO.1O32 Series of 2019 Subject: Amendments to the Guidelines on the Basic Security Deposit Requirement The Monetary Board, in its Resolution No. 112 dated lTJanuary 20L9, approved the amendments to the Manual of Regulations for Banks (MORB) and Manual of Regulations for Non-Bank Financial Institutions (MORNBFI), respectively, on the administration of compliance with the basic security deposit requirement. Section 1. Subsecs. X4O5.4/44O5Q.4, [4L5.4/44L5Q.4, and X960.5/4960Q.5 of the MORB/MORNBFI are hereby amended to read, as follows: Subsec. X4O5.414405q.4, x4L5.41415Q.4 Compliance with the basic security deposit requirement. a. Compliancel. The trustee or fiduciary/investment manager shall ensure compliance with the required basic security deposit at all times. Any deficiency arising from a withdrawal, replacement or redemption transaction must be corrected through the immediate posting of additional securities. ln case a deficiency is calculated at the end of the calendar quarter, the trustee or fiduciary shall have a grace period of thirty (30) calendar days reckoned from the end of the reference calendar quarter within which to deposit with the Bangko Sentral the securities required under this Section. (1) Quarterly Compliance. The trustee or fiduciary/investment manager shall comply with the basic security deposit requirement on a quarterly basis. xxx Haircuts for government securities prescribed under Subsection X4O5.3/44O5Q.3/X415.3/4415Q.3 shall be determined based on the remaining maturity of the security from the end of the reference quarter, and applied on the fair value of the government securities used as compliance with the basic security deposit. xxx (2)Compliance upon deposit, withdrawal, replacement or redemption. The trustee or fiduciary/investment manager shall ensure compliance with the basic security deposit requirement after every deposit, withdrawal, replacement or redemption of government securities. The basic security deposit requirement shall be the 1 The provisions on quarterly compliance and compliance upon deposit, withdrawal, replacement or redemption became effective on 31 March 2018. Pase 1 of 9 A. Mabini St., Malate 1OO4 Manila, Philippines t (632) 7O8-77OL' www.bsp.gov.ph+ [email protected]

amount computed as of the quarter-end preceding the date of deposit, withdrawal, replacement or redemption pursuant to Subsec. X4O5.3/4405Q.3/X415.3/44I5Q.3. The fair value of the remaining government securities, adjusted for relevant haircuts, shall be based on amounts reported as of the quarter-end preceding the date of deposit, withdrawal, replacement or redemption, pursuant to Subsec. X405.3/44O5Q.3/X415.3/4415Q.3. The haircuts shall be determined based on the remaining maturity of the security from the quarter-end preceding the date of the securities transfer transaction. Securities used as compliance with the basic security deposit requirement that are issued within the calendar quarter shall be valued at their purchase price, adjusted for relevant haircuts that are determined based on their remaining maturity as of the purchase date. b. Required Reports. Trustees or fiduciary/investment managers shall submit the following reports in accordance with Appendix 5/Appendix Q-3: (1) Quarterly Report on Compliance with the Basic Security Deposit Requirement (BSD-Form-1); and (2) Report on Basic Security Deposit Transactions (BSD-Form-2). Trustees or fiduciary/investment managers shall maintain adequate documentation (e.g., screenshots of fair values) to support the computation of their compliance with the basic security deposit requirement, which shall be made available to the Bangko Sentral upon request. Other Procedural Requirements. (1) Opening of a Securities Account. The guidelines on the opening of an account with the BTr Registry are provided in Appendix 34/Q-Zt. (2) Deposit, Withdrawal or Replacement. The trustee or fiduciary/investment manager shall input the details of securities transfer transactions that are properly supported by notification reports in the BTr Registry to effect the deposit, withdrawal or replacement of securities on the intended date of transfer in the BTr Registry. The input of details of transactions shall be made on or before L2:OO noon for withdrawal or replacement transactions, and on or before 3:30 pm for deposit transactions, on the intended date of transfer as provided in the BSD-Form-2. Withdrawal or replacement transactions entered after the cut-off time shall be processed on the next banking day: Provided, That the trustee or fiduciary/investment manager re-enters the details of the withdrawal or replacement transaction on or before LZJO noon of the next banking day: Provided further, That deficiency in the basic security deposit arising from failure of the trustee or fiduciary/investment manager to input details of withdrawal or

replacement transactions in the BTr Registry on the intended date of transfer shall cause the imposition of sanctions/ penalties under this Subsection. Failure to enter or re-enter the transaction details on the next banking day will result in the cancellation of the previously submitted BSD-Form-2. To effect withdrawal or replacement transactions, the trustee or fiduciary/investment manager shall re-submit the BSD-Form-2 in accordance with the prescribed timelines. (3) Administration of Proceeds from Deposited Securities. Coupon or interest payments and the redemption value of matured securities that are deposited with the Bangko Sentral shall be credited to the DDA of the trustee or fiduciary/investment manager or the DDA of the trustee or fiduciary/investment manager's settlement bank. Trustees or fiduciary/ investment managers shall develop and maintain systems to ensure compliance with the required basic security deposit as prescribed in this Subsection. d. Sanctions. (1) The following sanctions shall be imposed for any deficiency in the basic security deposit for the faithful performance of trust, investment management and other fiduciary duties: (a) On the bank/QB: xxx (b) On the trust officer and/or other officer/s xxx (2) Notwithstanding the execution of a basic security deposit, withdrawal, or replacement transaction, the Bangko Sentral is not precluded from imposing sanctions against the trustee or fiduciary/ investment manager for non- compliance with the regulations on the basic security deposit, if warranted. Subsec. X96O.514950q.S Security for the faithful performance of Administrators. xxx b. Compliance with the basic security deposit requirement. (1) Compliance2. The Administrator shall ensure compliance with the required basic security deposit at all times. Any deficiency arising from a withdrawal, replacement or redemption transaction must be corrected through the immediate posting of additional securities. In case a deficiency is calculated at the end of the calendar quarter, the Administrator shall have a grace period of one (1) week reckoned from the end of the reference calendar quarter within which to deposit with the Bangko Sentral the securities required under this Section. The provisions on quarterly compliance and compliance upon deposit, withdrawal, replacement or redemption became effective on 31 March 2018.

(a) Quarterly compliance. The Administrator shall comply with the basic security deposit requirement on a quarterly basis. xxx Haircuts for government securities prescribed under ltem tta" of this Subsection shall be determined based on the remaining maturity of the security from the end of the reference quarter, and applied on the fair value of the government securities used as compliance with the basic security deposit. xxx (b) Compliance upon deposit, withdrawal, replacement or redemption. The Administrator shall ensure compliance with the basic security deposit requirement after every deposit, withdrawal, replacement or redemption of government securities. The basic security deposit requirement shall be the amount computed as of the quarter-end preceding the date of deposit, withdrawal, replacement or redemption pursuant to ltem tta" of this Subsection. The fair value of the remaining government securities, adjusted for the relevant haircuts, shall be based on amounts reported as of the quarter-end preceding the date of deposit, withdrawal, replacement or redemption pursuant to ltem "a" of this Subsection. The haircuts shall be determined based on the remaining maturity of the security from the quarter- end preceding the date of the securities transfer transaction. Securities used as compliance with the basic security deposit requirement that are issued within the calendar quarter shall be valued at their purchase price, adjusted for relevant haircuts that are determined based on their remaining maturity as of the purchase date. (2) Required Reports. The Administrator shall submit the following reports in accordance with Appen dix 6/ Appendix Q-3: (a) Quarterly Report on Compliance with the Basic Security Deposit Requirement (BSD-PERA-Form-1); and (b) Report on Basic Security Deposit Transactions (BSD-PERA-Form-2). Administrators shall maintain adequate documentation (e.g., screenshots of fair values) to support the computation of their compliance with the basic security deposit requirement, which shall be made available to the Bangko Sentral upon request. (3) Other Procedural Requirements. (a) Opening of a Securities Account. The guidelines on the opening of an account with the BTr Registry are provided in Appendix 34A/Q-21A.

(b) Deposit, Withdrawal or Replacement. The Administrator shall input the details of securities transfer transactions that are properly supported by notification reports in the BTr Registry to effect the deposit, withdrawal or replacement of securities on the intended date of transfer in the BTr Registry. The input of details of transactions shall be made on or before 12:00 noon for withdrawal or replacement transactions, and on or before 3:30 pm for deposit transactions, on the intended date of transfer as provided in the BSD-PERA-Form-2. Withdrawal or replacement transactions entered after the cut-off time shall be processed on the next banking day: Provided That the Administrator re- enters the details of the withdrawal or replacement transaction on or before 12:00 noon of the next banking day: Provided further, That deficiency in the basic security deposit arising from failure of the Administrator to input details of withdrawal or replacement transactions in the BTr Registry on the intended date of transfer shall cause the imposition of sanctions/ penalties under this Subsection. Failure to enter or re-enter the transaction details on the next banking day will result in the cancellation of the previously submitted BSD-PERA-Form-2. To effect withdrawal or replacement transactions, the Administrator shall re-submit the BSD-PERA-Form-2 in accordance with the prescribed timelines. (c) Administration of Proceeds from Deposited Securities. Coupon or interest payments and the redemption value of matured securities that are deposited with the Bangko Sentral shall be credited to the DDA of the Administrator or the DDA of the Administrator's settlement bank. Administrators shall develop and maintain systems to ensure compliance with the required basic security deposit as prescribed in this Subsection. (4) Sanctions. (a)An Administrator which incurs a deficiency with the basic security deposit within the quarter, or reports a deficiency with the basic security deposit as of the end of the quarter and fails to deposit securities to comply with the said requirement within the one (l)-week grace period, shall be considered deficient with the basic security deposit requirement from the date the deficiency is incurred up to the date the deficiency is corrected or the succeeding quarter-end, whichever comes earlier. XXX (b) Notwithstanding the execution of a basic security deposit, withdrawal, or replacement transaction, the Bangko Sentral is not precluded from imposing sanctions against the Administrator for non-compliance with the regulations on the baslc security deposit, if warranted.

Section 2. Subsec. 4LI2T.I,4LL2T.4 and 4112T.5 of the MORNBFI are hereby amended to read as follows: Subsec. 4tt2T.l Basic security deposit. xxx The basic security deposit shall be in the form of government securities acceptable to the Bangko Sentral, pursuant to Subsec. 4LLZT.2. Scripless securities underthe Bureau of the Treasury (BTr) Registry may be used as basic security deposit for trust and other fiduciary duties. The security for the faithful performance of Personal Equity and Retirement Account (PERA) Administrator shall be separately calculated as prescribed under Section 4960Q of the MORNBFI. Subsec. 4Ll2T.4 Compliance with the basic security deposit requirement. a. Compliance3. The trust corporation shall ensure compliance with the required basic security deposit at all times. Any deficiency arising from a withdrawal, replacement or redemption transaction must be corrected through the immediate posting of additional securities. In case a deficiency is calculated at the end of the calendar quarter, the trust corporation shall have a grace period of thirty (30) calendar days reckoned from the end of the reference calendar quarter within which to deposit with the Bangko Sentral the additional securities required under this Section. In case of change in the trust rating, the reckoning period of the thirty (30) days shall be the quarter-end from receipt of the Report of Examination. (1) Quarterly compliance. The trust corporation shall comply with the basic security deposit requirement on a quarterly basis. xxx Haircuts for government securities prescribed under Subsection 4LI2T.3 shall be determined based on the remaining maturity of the security from the end of the reference quarter, and applied on the fair value of the government securities used as compliance with the basic security deposit. xxx (21 Compliance upon deposit, withdrawal, replacement or redemption. The trust corporation shall ensure compliance with the basic security deposit requirement after every deposit, withdrawal, replacement or redemption of government securities. The basic security deposit requirement shall be the amount computed as of the quarter-end preceding the date of deposit, withdrawal, replacement or redemption pursuant to 411.2T.3. The fair value of the remaining government securities, adjusted for relevant haircuts shall be based on amounts reported as of the quarter-end preceding the date of deposit, withdrawal, replacement or redemption pursuant to Subsec. 4Lt2T.3. The haircuts shall be determined based The provisions on quarterly compliance and compliance upon deposit, withdrawal, replacement or redemption became effective on 31 March 2018.

on the remaining maturity of the security from the quarter-end preceding the date of the securities transfer transaction. Securities used as compliance with the basic security deposit requirement that are issued within the calendar quarter shall be valued at their purchase price, adjusted for relevant haircuts that are determined based on their remaining maturity as of the purchase date. b. Required Reports. Trust corporations shall submit the following reports in accordance with Appendix T-3: (1) Quarterly Report on Compliance with the Basic Security Deposit Requirement (BSD-Form-1); and (2) Report on Basic Security Deposit Transactions (BSD-Form-2). Trust corporations shall maintain adequate documentation (e.g., screenshots of fair values) to support the computation of their compliance with the basic security deposit requirement, which shall be made available to the Bangko Sentral upon request. c. Other Procedural Requirements. (1) Opening of a Securities Account. The guidelines on the opening of an account with the BTr Registry are provided in Appendix Q-21. (2) Deposit, Withdrawal or Replacement. The trust corporation shall input the details of securities transfer transactions that are properly supported by notification reports in the BTr Registry to effect the deposit, withdrawal or replacement of securities on the intended date of transfer in the BTr Registry. The input of details of transactions shall be made on or before 12:00 noon for withdrawal or replacement transactions, and on or before 3:30 pm for deposit transactions, on the intended date of transfer as provided in the BSD-Form-2. Withdrawal or replacement transactions entered after the cut-off time shall be processed on the next banking day: Provided, That the trust corporation re- enters the details of the withdrawal or replacement transaction on or before 12:00 noon of the next banking day: Provided further, That deficiency in the basic security deposit arising from failure of the trust corporation to input details of withdrawal or replacement transactions in the BTr Registry on the intended date of transfer shall cause the imposition of sanctions/ penalties under Subsec. 4Lt2T.5. Failure to enter or re-enter the transaction details on the next banking day will result in the cancellation of the previously submitted BSD-Form-2. To effect withdrawal or replacement transactions, the trust corporation shall re- submit the BSD-Form-2 in accordance with the prescribed timelines. (3) Administration of Proceeds from Deposited Securities. Coupon or interest payments and the redemption value of matured securities that are deposited

with the Bangko Sentral shall be credited to the DDA of the trust corporation's settlement bank. Trust corporations shall develop and maintain systems to ensure compliance with the required basic security deposit as prescribed in this Subsection. Su bsec. 4t1,2T .5 So nctio n s. Without prejudice to the imposition of sanctions for capital deficiency, the following sanctions shall be imposed for any deficiency in the basic security deposit for the faithful performance of trust and other fiduciary duties and investment management activities: (1) On the TC (a) Daily monetary penalty xxx (b) Non-monetary xxx (2) On the president (a)xxx (b)xxx (c)xxx (d)xxx b. Notwithstanding the execution of a basic security deposit, withdrawal, or replacement transaction, the Bangko Sentral is not precluded from imposing sanctions against the trust corporation for non-compliance with the regulations on the basic security deposit, if warranted. Section 3. Subsec. X44I.L4{444LQ.I4/4441N.14 are hereby amended to read as follows: Subsec. X441..L41444LQ.t414441N.14 Required Reports. An accredited securities custodian shall comply with the reportorial requirements, prescribed under ltem "b" of Su bsec. X4O5.4 / 44O5Q.4. Section 4. The amendmentsto Appendices 34/34o and Q21/Q21a of the MORB/ MORNBFT are attached as Annex A. Section 5. The reportorial templates covering reports on basic security deposit transactions and quarterly compliance are shown in the following annexes: Annex Form Number Report Title B BSD-Form-1 Quarterly Report on Compliance with the Basic Security Deposit Requirement (with certification from the authorized officer) c BSD-Form-2 Report on Basic Security Deposit Transaction (with certification from the authorized officer) D BSD-PERA. Quarterly Report on Compliance with the Basic Security Deposit Form-1 Requirement for PERA Administrator (with certification from the authorized officer) E BSD-PERA- Report on Basic Security Deposit Transaction for PERA Form-2 Administrator (with certification from the authorized officer)

Section 5. Appendix 6 of the MORB and Appendices Q-3, T-3 ond N-l of the MORNBFI are hereby amended to include the following reports: Catcgory Form MOR/MORNBFI Ref Report Tltlc Frequency Submlsslon Submlsslon Procedure ilumber Deadllne (Anner 1{umberl BSD- x40s.4l Quarterly Report Quarterly 20 banking e-mailto Form-1; x4t5.4l on Compliance with days after end [email protected], 44OSQ.4/ the Basic Security of every 5DC e-mail and to approprlate 4tt2T.4 Deposit quarter supervislng departments Requirement (with B BSD. x960.s/ certification from PERA- 4960q.s Trust Officer in the Form-1 case of trust entities, and designated/ authorized officerl BSD- Report on Basic On every 3 banking/ e-mail to Form-2; Security Deposit deposit, business days BSD-Transactional Transactions with withdrawal, prior to date of @bsp.sov.ph and to B certification from replacement or securities appropriate supervising designated/ redemption of transfer departments 85D. authorized securities PERA. officer Form-2 Section 7. This Section amends the Financial Reporting Package for Trust Institutions (FRPTI) and Financial Reporting Package for Trust Corporations {FRPTC) - Line ltem Instructions and corresponding schedules to align with the basic security deposit rules and regulations (Annex F provides the revisions in the reports templates of the FRPTI (Annex F-1) / FRPTC (Annex F-2): Reporting Template of Report on Trust and Other Fiduciary Services - Balance Sheet {Consolidated Peso and FCDUf Schedule of a Bank's Trust Department and Balance Sheet (Consolidated Peso and FCDA| Schedule of a Trust Corporation Amendment of ltem 8.b of Additional Information Trust & Agency Assets (including Securities Custodianship with SBL Agency Agreement but excluding PERA Administratorship) multiplied by the rate of basic security deposit. Section 8. Effectivity. This Circular shall take effect fifteen (15) days following its publication either in the Official Gazette or in any newspaper of general circulation in the Philippines. FORTHE MONETARY BOARD: l-^ rnm-t)maU llt1- L4dil. MARIA A lMnsnne cYD N. TUAfro-AMADoR Officer-ln-Charge ( February 2OL9

Annex A Appendix 34lQZt GUIDELINES ON THE OPENING OF A SECURITIES ACCOUNT WITH THE BUREAU OF THE TREASURY REGISTRY (Appendix to Subsec. X405.4/4405Q.4 ond X415.4/4415Q.4 and 4112T.4) A. Definition of Terms and Acronyms Scripless securities - refers to uncertificated securities issued by the Bureau of the Treasury (BTr) that are under the BTr's Registry Trust Entity (TE) - defined under Section X403 of the MORB BTr - Bureau ofthe Treasury BTr Registry - Registry of scripless securities maintained by the BTr or any registry system of scripless securities recognized as such by the BTr. DDA - refers to the regular demand deposit account of a bank/quasi-bank with Bangko Sentral B. Basic Requirements on the Opening of a Securities Account with the BTr Registry 1. The sector of the Bangko Sentral which is responsible for supervising banks/quasi- banks/trust entities shall file with the BTr an application to open a Registry Account where scripless securities of trust entities used as security deposit for trust duties shall be held. 2. The trust entity shall request for the opening of a Client Securities Account with the BTr. The relevant fees for the maintenance of the Client Securities Accounts with the BTr shall be subject to the terms and conditions of the BTr. 3. A trust entity with a DDA shall act as its own settlement bank. A trust entity without a DDA shall designate a settlement bank which will act as conduit for transferring securities for trust duties to the Bangko Sentral Registry account and for paying interest, interest coupons and redemption proceeds. The trust entity shall inform the appropriate supervising department of the Bangko Sentral of the designation of a settlement bank. 4. Each trust entity shall accomplish an Autodebit / Autocredit Authorizotion for its client securities account under the supervising sector's Registry account. The document shall authorize the BTr and the Bangko Sentral to credit the DDA of the trust entity or the designated settlement bank for coupons/ interest payments and maturity proceeds of securities and to debit the same DDA for the monthly fees payable to the BTr for the maintenance of the trust entity's client securities accounts with the Bangko Sentral. lt will also authorize the BTR and Bangko Sentral to credit the deposit account of the trust entity or the designated settlement bank for the redemption proceeds of securities that mature while in the Bangko Sentral - FSS Registry account. A trust entity with a DDA with Bangko Sentral shall use Annex A.1 while a trust entity with a settlement arrangement shall use Annex A.2. Page L of 2

Annex A Appendix 34alQ-2la GUIDEIINES ON THE OPENING OF A SECURITIES ACCOUNT WITH THE BUREAU OF THE TREASURY REGISTRY FOR PERA ADMTNISTRATOR (Append ix to Su bsec. X96O.5 / 4960e.S) A. Definition of Terms and Acronyms BTr - Bureau ofthe Treasury DDA - refers to the regular demand deposit account of a bank/quasi-bank with Bangko Sentral Financial Institution (Fl) - refers to a bank, non-bank financial institution, or trust entity supervised by the Bangko Sentral that is accredited as a PERA Administrator BTr Registry - Registry of scripless securities maintained by the BTr or any registry system of scripless securities recognized as such by the BTr. scripless securities - refers to uncertificated securities issued by the BTr B. Basic Requirements on the Opening of a Securities Account with the BTr Registry 1. The sector of the Bangko Sentral which is responsible for supervising banks/quasi- banks/trust entities shall file with the BTr an application to open a BSP-PERA registry account where the securities for the faithful performance of PERA Administrator shall be held. The Fl shall request for the opening of a Client Securities Account with the BTr. The relevant fees for the maintenance of the Client Securities Accounts with the BTr shall be subject to the terms and conditions of the BTr. An Fl without a DDA shall designate a settlement bank and shall inform the appropriate supervising department of its designated settlement bank. 4. Each Fl shall accomplish an autodebit/autocredit authorization for its PERA Administrator securities account under the BSP-PERA Registry account. The document shall authorize the BTr and the Bangko Sentral to credit the DDA of the Fl or the designated settlement bank for coupons/interest payments and maturity proceeds of securities and to debit the same DDA for the monthly fees payable to the BTr for maintenance of the PERA Administrator securities account. An Fl with a DDA with Bangko Sentral shall use Annex A.1 while an Ft with a designated settlement bank shall use Annex A.2.

Annex A.1 (App.3dA-21) To be used bv a Trust Entitv with own demand deposit account with Bansko Sentral Letterhead of Trust Entity AUTODEBTT/AUTOCREDTT AUTHORTZATTON The (name of Trust EntiW) hereby authorizes the Bureau of the Treasury (BTr) and the Bangko Sentral to credit our demand deposit account (DDA) with Bangko Sentral for coupons/interest payment including the redemption proceeds of our securities deposited with the Bangko Sentral under the BTr Registry and to debit our DDA to settle the payment of monthly maintenance fees of the BTr for maintaining our client securities account with the Bangko Sentral. This authorization will take effect on (indicate date) (Authorized Signatory)

Annex A.r (App. 34alQ-21a1 To be used bv an Fl with demand deoosit account with Bansko Sentral Letterhead of PERA Administrator AUTODEBTT/AUTOCREDTT AUTHORTZATTON The (Name of PERA Administrator) hereby authorizes the Bureau of the Treasury (BTr) and the Bangko Sentral to credit our demand deposit account (DDA) with the Bangko Sentral for coupons/interest payment including the redemption proceeds of our securities deposited with the Bangko Sentral-PERA under the BTr Registry and to debit our DDA to settle the payment of monthly maintenance fees of the BTr for maintaining our client securities with Bangko Sentral-PERA. This authorization will take effect on (indicate date) (Authorized Signatory)

Annex A.2 (App.3alQ-21) To be used bv a trust entitv with settlement arransement with a bank Letterhead of Trust Entity AUTODEBTT/AUTOCREDIT AUTHORIZATION The (Name of settlement bank) for the account of (Name of trust entitvl hereby authorizes the Bureau of the Treasury (BTr) and the Bangko Sentral to credit our demand deposit account (DDA) with the Bangko Sentral for coupons/interest payment including the redemption proceeds of securities of (Name of Trust Entitv) deposited with the appropriate supervising department of the Bangko Sentral under the BTr Registry and to debit our DDA to settle the payment of monthly maintenance fees of the BTr for maintaining the client securities account of (Name of trust entitv) with the appropriate supervising department of the Eangko Sentral. This authorization will take effect on (indicate date) (Authorized Signatory of Settlement Bank) (Authorized Signatory of Trust Entity)

Annex A.2 (App. }4alQ-2lal To be used bv an Fl with settlement arraneement with a bank Letterhead of Trust Entity AUTODEBTT/AUTOCREDTT AUTHORIZATION The (Name of settlement bank) for the account of (Name of PERA Administrator) hereby authorizes the Bureau of the Treasury (BTr) and the Bangko Sentral to credit our demand deposit account (DDA) with Bangko Sentralfor coupons/interest payment and redemption proceeds of securities of the (Name of Financial Institution/trust entitv) deposited with Bangko Sentral under the BTr Registry and to debit our DDA to settle the payment of monthly maintenance fees of the BTr for maintaining the client securities of (Name of financial institution/ trust entitv) with Bangko Sentral-PERA. This authorization will take effect on (indicate date) (Authorized Signatory of Settlement Bank) (Authorized Signatory of PERA Administrator)

lffii?| Form:-EQ-Form-1 Category: Category B Deadline: 20 banking days after end of calendar quarter FOR Arr BANKS/qBS/NBFF/TRUST CORPORATTONS Name of Trust Entity Code Address qUARTERLY REPORT ON COMPTIANCE WITH THE BASIC SECURIW DEPOSIT REQUIREMENT As of We solemnly swear that all matters set forth in this report including its supporting schedules are true and correct, to the best of our knowledge and belief. Signature of Trust Officer Authorized Officer

Form:!$$4[ Schedule 1 QUARTERTY REPORT ON COMPTIANCE WITH THE BSD Name of Trust Entity Computation of Security Deposit for Faithful Performance of Trust and Other Fiduciary Business/lnvestment Management Activities Including Custodianship Operations As of calendar quarter-end Amount A. BASE AMOUNT OF REQUIRED BASIC SECURITY DEPOSIT Trust and Other Fiduciary Accounts (lncluding Unit Investment Trust Funds and I nvestment Management Accounts) a. Peso Accounts b. FCDU/EFCDU (Peso Equivalent) Sub-total Securities Held Under Custodianship (At Face Value) a. Bank Proper/ QB Proper b. Trust Department i. Custodianship ii. Securities lending Sub-total 3 Total Trust Department Accountability B. BASIC SECURITY DEPOSIT 1 Basic Security Deposit Requirementl 2 Basic Security Deposit Requirement for Custodianship Business a t/25 of 1% of the Sum of A.2.a and A.2.b.i b. t%of A.2.b.ii 3 Total Basic Security Deposit (81 and 82) 4 Minimum of P500 thousand 500,000.00 5 BSD Requirement (Higher of 8.4 or B.3) c. INVENTORY OF SECURITIES DEPOSITED AS COMPTIANCE WITH BSD REQUIREMENT (Schedule 2) D. EXCESS/(DEFTCTENCY) LYo of A.I for banks, quasi-banks, or trust entities or 0.05% for a Trust Corporations in its first year of operations or 0.03% to O.2O% (based on the recent trust rating) thereafter, pursuant to Subsection 4112T.1 of the MORNBFI.

Form: BSD-Form-l Schedule 2 Name of Trust Entity sEcuRlTlEs HELD FOR THE FAITHFUL PERFORMANCE OF TRUST AND OTHER FIDUCTARY BUSTNESS/ TNVESTMENT MANAGEMENT ACnVmES/ CUSTOD|ANSH|P BUSTNESS UNDER THE BTR REGISTRY As of Calendar Ouarter-end DATE AMOUNT Falr Value Ramalninr Tanor Haircut Tvoe E!! lssue Purchasc Transfer Maturitv lllet of Facc Purchase Fair Value lln Ycarsl (ln Pcrccntl (ddlmm/wl ldd/mm/wl ldd/mm/wl ldd/mm/wl Haircutl Total

Form: BSD-Form-l QUARTERLY CERTIFICATION ON COMPTIANCE WITH REqUIREMENTS ON EASIC SECURITY DEPOSIT (Name of Trust Entity) CERTIFICATION We, (Name of Officer), Trust Officer and (Name of Officer), Authorized Officer on behalf of Name of Trust Entitv. with office address at (Head/Princioal Officel. after having been duly sworn in accordance with law, hereby certiff the following: l. The securities held in faithful performance of trust and other fiduciary business/investment manaBement activities and/or custodianship business are eligible based on the provisions of existing regulations; 2. Fair value methodology with applicable haircuts is used in determining compliance with the basic security deposit requirement in accordance with existing regulations; and 3. The Trust Entity complies with the required security deposit for the faithful performance of trust and other fiduciary business/investment management activities and/or custodian business in accordance with existing regulations. SIGNATURE ABOVE PRINTED NAME OF AUTHORIZED OFFICER S]GNATURE ABOVE PRINTED NAME OF TRUST OFFICER Subscribed and sworn to before me, this _ day of affiants exhibiting valid identification indicated below: Government lD/Passport No. Date/Place of lssue lN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal on the date and place first above written. Doc. No. Page No. Book No. Series of _.

I d;''-"cl Form:$}[qi! Category B Deadline: 3 banking days prior to intended date of security transfer FOR Arr BANKS/qBS/NBFTS/TRUST CORPORATTONS Name of Trust Entity Code Address REPORT ON BASIC SECURIW DEPOSIT TRANSACTIONS As of I solemnly swear that all matters set forth in this report including its supporting schedules are true and correct, to the best of our knowledge and belief. Authorized Officer

Form:.!$$@! Schedule 1 REPORT ON BAS|C SECURTTY DEPOSTT (85D1 TRANSACTTONS (Name of Trust Entlty! (Date of Transaction) TRANSACTIONAT DETAIIS Note: Mark the opplicoble box with "X" , os shown: [| a. n Initial Deposit b. E Additional security deposit c. E Deposit for replacement d. E withdrawal e. E Redemption or maturity DETAILS OF SECURITY AMOUNT DATE (ln absolute amount) Remaininr Haircut Fair Value Tvoe tStN Tenor lln Pe.centl (Net of Haircutl lssue Purchase' Maturltv (ln Years) Face Purchase Falr Value (ddlmm/wl (dd/mm/wl (ddlmm/w) ' In the case of securltles lssued withln the calendar quarter. Additional Information on securiti$ that shall be replaced in the event of replacement: tl Outstanding securities D Maturing securities DETAILS OF SECURITY DATE AMOUNT Remainint Haircut Fair Value Tvpe lsrN lSSUe Purchaset Maturitv Tenor Face Purchase Fair Value {ln Percent} (Net of Haircutl (dd/mm/w) {dd/mm/wl (ddlmm/wl (ln Years) I In the case of securitles issued within the calendar quarter.

Form:-!$$4i! Schedule 2 REPORT ON BASIC SECURIW DEPOSITTRANSACTIONS AFTER EFFECTING THE TRANSFER Name of Trust Entity Computation of Security Deposlt for Faithful Performance of Trust and Other Flduclary Buslness/lnvestment Management Actavltles Including Custodianship Operataons Asof@ Amount BASE AMOUNT OF REQUIRED BASIC SECURITY DEPOSIT (AS OF PREVIOUS CATENDAR QUARTER.END) 1 Trust and Other Fiduciary Accounts (lncluding Unit Investment Trust Funds and Investment Management Accounts) a. Peso Accounts b. FCDU/EFCDU (Peso Equivalent) Sub-total 2 Securities Held Under Custodianship (At Face Value) a. Bank Proper/ QB Proper b. Trust Department i. Custodianship ii. Securities lending Sub-total 3 Total Trust Department Accountability BASICSECURITY DEPOSIT 1 Basic Security Deposit Requirement' 2 Basic Security Deposit Requirement for Custodianship Business a L/25 of 1% of the Sum of A.2.a and A.2.b.i b. L% of A.2.b.ii 3 Total Basic Security Deposit (81 and 82) 4 Minimum of P500 thousand 500,0d).00 5 BSD Requirement (Higher of 8.4 or 8.3) INVENTORY OF SECURITIES DEPOSITED AS COMPTIANCE WITH BSD REQUIREMENT AFTER SECURITIES TMNSFER/REDEMPTTON (schedule 3l EXCESS/(DEFtCtENCY) 1L%olA,Llorbanks,quasi-banksortrustentitiesorO.O5%foraTrustCorporationslnitsfirstyearof operationsor0.O3%toO,2O%(basedonthe recent trust rating) thereafter, pursuant to subsection 4112T.1 of the MoRNBFI.

Form: BSD-Form-2 Schedule 3 Name of Trust Entity sEcuRlTlEs HELD FoR THE FAITHFUL PERFORMANCE oF TRUST AND OTHER FIDUCIARY BUslNEss/ TNVESTMENT MANAGEMENT AcTtvtTtEs/ cusroDtANsHtp BUstNEss UNDER THE BTR REGISTRY AFTER THE SECURITIES TRANSFER/REDEMPTION As of Transaction Date DATE AMOUNT Tvoa Et! lss||! Purdras Transfer @slllE ianainina Tanof ll|imlt Frir V.luc lddlmm/wl lddlmm/wl Fce Purdrrrc Frir V.lu. fln Y..Rl {ln Perccntl lNet of Hr.lrq|tl ldd/mm/wl ldd/mm/wl Total

Form: BSD-Form-2 CERTIFICATION ON COMPTIANCE WITH REQUIREMENTS ON BASIC SECURIW DEPOSIT TRANSACTIONS (Name of Trust Entity) CERTIFICATION l, (Name of Officer). Authorized Officer on behalf of Name of Trust EntiW. with office address at (Head/Principal Officel. after having been duly sworn in accordance with law, hereby certiry the following: 1. The securities held in faithful performance of trust and other fiduciary business/investment management activities and/or custodianship business are eligible based on the provisions of existing regulations; 2. Fair value methodology with applicable haircuts is used in determining compliance with the basic security deposit requirement in accordance with existing regulations; and 3. The Trust Entity complies with the required security deposit for the faithful performance of trust and other fiduciary business/investment management activities and/or custodian business in accordance with existing regulations on basic security deposit transactions. SIGNATURE ABOVE PRINTED NAME OF AUTHORIZED OFFICER Subscribed and sworn to before me, this _ day of affiant exhibiting valid identification indicated below: Name Government lD/Passport No. Date/Place of lssue lN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal on the date and place first above written. Doc. No. Page No. Book No. Series of

Form:-E594EB&fs[4! Category: Category B Deadline: 20 banking days after end of calendar quarter FOR Att PERA Administrators Name of PERA Administrator Code Address qUARTERIY REPORT ON COMPTIANCE WITH THE BASIC SECURIW OEPOSIT REqUIREMENT As ol I solemnly swear that all matters set forth in this report including its supporting schedules are true and correct, to the best of our knowledge and belief. Authorized Officer

Form: BSO-pERA-Form-1 Schedule 1 Name of PERA Admlnistrator Computation of Securlty for Faithful performance of PERA Admlnistrator As of Calendar Quarter End A. BASE AMOUNT OF REqU|RED BASTC SECURTW DEPOS|T For the quarter-ended (g!flgl PERA Assets under Administration l't month 2nd month 3td month Average P- B. BASIC SECUR]rY DEPOSIT Basic security Deposit Requirement lL% of A.L or p0.500 million whichever is higher) C. INVENTORY OF SECURITIES DEPOSITED AS COMPTIANCE WITH 8SD REQUTREMENT (Schedute 2| D. EXCESS/(DEF|C|ENCYI

Form:_ES.EPEE&@:! Schedule 2 Name of PERA Administrator SECURITIES HELD FOR THE FAITHFUL PERFORMANCE OF PERA ADMINISTRATOR UNDER THE BTR REGISTRY As of Calendar Quarter-end DATE AMOUNT Tvpc tstN Ramainlns Tanor Hairtut ;.lr V.luc !33UC Purthase Transfer i,Lturitv (ddlmm/wl Face Purchase Fair V.lue fln Yeanl lln Percentl lilGt ot H.ircutl ldd/mm/wl lddlmm/wl lddlmm/wl Total

Form: BSD-PERA-Form-1 QUARTERTY CERTIFICATION ON COMPTIANCE WITH REQUIREMENTS ON BASIC SECURITY DEPOSIT (Name of PERA Administrator) CERTIFICATION (DArEl l, (Name of Officer) Authorized Officer on behalf of Name of PERA Administrator, with office address at (Head/Principal Office). after having been duly sworn in accordance with law, hereby certifi/ the following: 1. The securities held in faithful performance of PERA Administrator- activities are eligible based on the provisions of existing regulations; 2' Fair value methodology with applicable haircuts is used in determining compliance with the basic security deposit requirement in accordance with existing regulations; and 3. The (Name of PERA Administrator) complies with the required security deposit for the faithful performance of Administrator duties in accordance with existing regulations. SIGNATURE ABOVE PRINTED NAME OF AUTHORIZED OFFICER Subscribed and sworn to before me, this _ day of affiant exhibiting valid identification indicated below: Name Government lD/Passport No. Date/Place of lssue lN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal on the date and place first above written. Doc. No. Page No. Book No. Series of

Annex "E" FoTm: BSD.PERA.Form.2 Category: Category B Deadline: 3 banking days prior to intended date of security transfer FOR PERA Administrators Name of PERA Administrator Code Address REPORT ON BASIC SECURIW DEPOSIT TRANSACTIONS As of I solemnly swear that all matters set forth in this report including its supporting schedules are true and correct, to the best of our knowledge and belief. Authorized Officer

Form: BSD-PERA-Form-2 Schedule 1 REPORT ON BASTC SECURTW DEPOS|T (BSDI TRANSACTTONS (Name of PERA Admlnlstratorl (Date of Transactionl TRANSACTIONAT Note: Mork the applicoble box with "X" , os shown: E a. f] InitialDeposit b. n Additional security deposit c. E Deposit for replacement d. t] withdrawal e. E Redemption or maturity DETAILS OF SECURIW AMOUNT DATE (ln absolute amount) Fair Value Tvoe tStN Haircut Remainlng (ln Percent) {Net of lSsue Purchaser Maturitv Haircutl (ddlmm/wl (ddlmm/wl Face Purchase Fair Value Tenor {ddlmm/w} lln Ye:rsl I In the case of securities issued within the calendar quarter, Additlonal Information on securitaes that shall be replaced in the event of replacement: E Outstanding securities E Maturing securities DETAILS OF SECURITY DATE AMOUNT Falr Value Tvoe tsrN Remalning Halrcut lssue Purchase* Maturitv (Net of Face Purchase Fair Value Tenor (ln Percentl (ddlmm/wl (ddlmm/wl Iddlmmlwl Haircutl (|n Yearsl ' In the case of securities issued within the calendar quarter.

Form:_9SEPEE&Esrq3 Schedule 2 Name of PERA Administrator REPORT ON BASTC SECURTTY DEPOS|T (BSDI TRANSACTTONS AFTER EFFECTING THE TRANSFER Computation of Securlty for Faithful Performance of PERA Admlnlstrator Date Amount A. BASE AMOUNT OF REQUIRED BASIC SECURITY DEPOSIT (AS OF PREV|OUS CALENDAR qUARTER-END) 1 PERA Assets under Administration 1't month 2nd month 3'd month Average P- 8. BASIC SECURITY OEPOSIT Basic Security Deposit Requirement (L% of A.t or p0.50O million whichever is higher) C. INVENTORY OF SECURITIES DEPOSITED AS COMPTIANCE WITH BSD REQUIREMENT AFTER SECURITIES TRANSFER/REDEMPTTON (Schedute 3! D. EXCESS/(OEF|C|ENCYI

Form:-ES,EEE&Eorm-!! Schedule 3 Name of PERA Administrator SECURITIES HELD FOR THE FAITHFUL PERFORMANCE OF PERA ADMINISTRATOR UNDER THE BTR REGISTRY AFTER SECURITIES TRANSFERS/REDEMPTION As of Transaction Date OATE AMOUNT Tvoe ElU lssue Purchase Transfer Remaininr Tenor Halrcut fairV.lue Maturity Face Purthase FairValue lln Yearsl (ln Percentl It{et of Halrdrtl lddlmm/wl fdd/mm/wl lddlmm/wl lddlmm/wl Total

Form: BSD-PERA-Form-2 CERTIFICATION ON COMPTIANCE WITH REQUIREMENTS ON BASIC SECURIW DEPOSIT TRANSACTIONS (Name of PERA Administrator) CERTIFICATION {DArEl l, (Name of Officer) Authorized Officer on behalf of Name of PERA Administrator. with office address at (Head/Principal Office). after having been duly sworn in accordance with law, hereby certifi/ the following: 1. The securities held in faithful performance of PERA Administrator activities are eligible based on the provisions of existing regulations; 2. Fair value methodology with applicable haircuts is used in determining compliance with the basic security deposit requirement in accordance with existing regulations; and 3. The (Name of PERA Administrator) complies with the required security deposit for the faithful performance of Administrator duties in accordance with existing regulations on basic security deposit transactions. SIGNATURE ABOVE PRINTED NAME OF AUTHORIZED OFFICER Subscribed and sworn to before me, this _ day of affiant exhibiting valid identification indicated below: Government D/Passport No. I Date/Place of lssue lN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal on the date and place first above written. Doc. No. Page No. Book No. Series of _.

FIIIANCIAL REPORTIXG PACKAGE R.po.l on Tru3t and Othr Flducllry S.rMcat Annax F-l Bd$c. Sh..t Corcolldated (P€so and FCDU) .i.: -i,'ll'.;:-; E"TUIY MMUE'Ef -, . .',r;'1 ".' ., :---::#3ffii;i $lntitt: :'t.!t | ' I liioritriirs{lir;aiinr . )t I r:)\\',| ryffi# I : ) . ..it.:t..,. l|trDlot.l.ndl Pr}|{..d rral Accounta 'I ) Csh m tttnd. Chtcl6 rnd Oths Csh tilms 'u6 from B (a) DrmddD.oo6ltAffit 1 )l OvmlohtD.GltAffil I 05t 5{n 3t a tl) Flnsd.l As3sb rt Fdr Valus 0vouah Profft d LGs It (e) D.bt and Eaily Seudtles 5050( 0 rl Dartvrtvd wilh PBldve Falr Aval! ssgts (a) AFS DcbtS.qnld6s omfum AFS Oabt Securld6E {.t amttlad 6ii} A/rs, rcurluc (Falr val@l ts )ldxxldxxxl (b) AFS Eoultv Srcudtrc Atufi,tbd Mtk.l Galm/ll nse AFS Equny Sccurtlcs (FskVelus) 1S lta:Abw dht Af Nd I' l2saxxxrxxrxxrrnn emhtm d Assab - Nst of Amqilzlbn Loss: Abw br Crsdt Losss HTM Fln ncl.l Ar!.b - N.l lbt Srr 14 Chs3licd a L6n! t3{xldloflxx UMMtln l Dlwtillhedilm 1703{XnC unquolcd Dabt Socurlts Clssnsd $ Lmm -Net of Amorlia0m Ld D.bl MSLdAna-Nan 1953 h Non-M.rt lsbl. Eoultv Se€ud0e! (INMES) LasE: ,ft*atrc€ (t Cradf Los9s8 1653 tNt/ M lgttits(Irx I LosfidRElv.bt 1a wtilaftlOtwtaMMh allon ls88: fuw lu Cr€dilLossg Lw ild [email protected] - Nct of Spaclffc Alilro tof Crad[ Lo3sls 10) Lcm and R.elv$hl Arlshg trom Rcpurdtss AgrcrmanB end Srcurthg Landlng and Borwlng Transaclbng ess: AbmbtCrcdf foass Loam end Faslvabl6 Adslng from RtprJrchasc Agraamant! and Sacurlda3 Lendlng end 8ffid |kE Transe.ilom-Net of Spadffc Alorenca for Crrdlt LGS6 la$: GaNd L@n LoB P, omo(xrrn lll Ddv.ltud$i Pdl to 145 rha codr*t R Lt33.'Abmm ,t Cflxttr Loass Sd$ Cmf&{ Rrcdv.bl. - Nct I g5/t5l slXlOflIIIIIn l3l 14 LetS: 'wana lt Credfr lsssf's 0 {cc,ruld lntaralt lncom from FkEndsl Asseb - Nrt 0flndxxxxl 14) Inve3trf,cnt Proo6rdca Less: AMUhled Dese&tbn Leaa: ,&vanea for LosEes lNat|Hl Prcilrto - NCt eal and OlhJ Do€rt8s Acoulred Las: A@umt/i€/r€d Da'9ffin Le66i Abmnca ,br toass 1E and Olhar Amrm-Nd t9550touxxr tess:AbmfdLMs Irl fofd Araal! 1 llltl6 :.. !4 . Pdr 2l Ammdst dlncom Net Unraallct Galn6/(Lossca) on AFS Flnenclel A 20215000000000(xx,0 rud0d 202tsosdxt(xxxxxxto l|Jlv Sscurties ubtolrl 202 /tl D.dv.{v* wllh I E coflxxxxxxxx) tvsw6 wllh Ncsallv! Fak Valu. Hold br Hrdolno a Eanadlmm 'n Dsb c Eutoau of Intotntl Rovonue Aeucd ErDaGd Accounts PayebL 10) ME€[endg Ll.blllibE ry ry lt 2txxto

F|NANCIAL REPORTIIIG PACKAGE

F]AIIIICI,AL REPORTI}IG PACKAGE - TRUST CORPORATION R.poi oo Trutt ard Oth.r Fklucl.ry Sowlce. B.bncc Sh.ot consolldated (Peso and FCDA) ;.i ri .:1 ,'..i il,r :l''Tif,llfiy'r :-'r;., , .l rAccouilTa E||nlo'r.B.nm Fl'}'tL.d Sttt Accounts l Cash on Hand. Choct! and Olhsr Cesh ltams 2) DuofromBSP (E) D€m€ndD€polltAccount (bl OlFmlght Dspoalt A@nt Degooits in Brnls q Flnandsl AsscB at Falr Valu€ throuqh prollt of Lcs (a) tlebl and Eqully S€curities tD) D€rrvafiwE vyilh posttiw Fair Valu€ Avsilabl+fd-Sele (AFS) Flnenciet Ass€ts (8) AFSD€btSocurltles U n afi wtlqtl D lsco u nuprcml u m Ats DeOl S€cuntio8 (at amortizBd cosll r602(n00r00(x)0@00 AFS tlabl S€cldtios (Fair Value) {b) AFS Equlty S€onltios Accunulaaed Ma*ea Gairylloss€s, AFS Equity Seorllies (Fair Valu€! Less: Albwence for Crcdlt Losss 16520000m00000000 AFS Flnanclal Asseb - N6t 16) Held{oalgtudty (HTM} Ftnendet A88ets 1250000000qD00000 Unanwtl@d Dls@unuPremfu m HTM Finandal Assels - lrl€l ot Amdtizrion Less: Ntowance lor &adit Loses HIM Flnandal Assats - Nct /) Unquoled t€bl Secud0es Classified as Lmns Una rbrlln d D iw untm e m ium unquotad Debl Seclrlties Classllied es Loens -Net of 1 30001 000000000000 Amodization Less: Albwancelw C/edf Losses Unquoted Debt S.(Ild0o3 Classified as Loam - t{et 5) I 350000000000qn00 Le ss: All owa tlce fot credit Loss€s INMES - N€I 9) Loans and R6celvabl6s 140150000m(x)00000 UnemodiAd Discount end Other Defered Crodlfs Loan3 and Rooslvables - l{€l of Amriluflon 't40150300000000000 Less: Allowence lor Crcdn Lo# I 55t s{lOOOOOOnol Loaru and Recetvabt€s - Nei of.Spedfc Allowanca for Credlt r40't50500000000000 Lo6s6 10) Loans and Receiwbt€s Arbing ftorr nepurctas- egreemente r/10200000000000000 and Socuritiqe Lendlng and Bono\fling Transsdions Less: Allowance for Credil Losses 1651E0000000000000 Loens and Rscoivables Arlsing from Repurcfrase Agreemints and Securiti€s Londing and Bonor,ving Transadlons-Net of Specific Allowence tor Credlt Losses Leas: Gensd Loen LosS Provisbn lGLLp, 1 1 ) Derivativ6 with Pogitivo Falr Velue H€ld fd Hdddind 12) Salos Conlract Roc€ivable Les: Allowncs tor Credil Losss srs uonrad R@gtvaDto - Not l!) l\gcrued Interesl Incomo from Financial Assots 14520000000001 Less: Ntomnce for Crodf Loases 165452000000000000 _iccru€o ntofosl |n@mB l'om Flnanciel Ass€ts _ Nel Less: Accumdated Def/,achtbn roo3{Do{xxxxxxxxrco E- Lessi Arlowelrca ,br Losgos Inwsur€il prop€rgo8 - Nel 1 5) R6el and Olher Properlle8 Acquired Loss: Accumulated Dewociatbn r|ttr 100000000000000000 [ I

FI.AI'II{CI,AL REPORTII{G PACKAGE. TRUST CORPORATIoX