Amendments to Regulations on Interlocking Positions

Bangko Sentral ng PiliPinas

OFFICE OF THE GOVERNOR

CIRCULAR NO. 851

Series of 2014

Subject: Amendments to Regulations on Interlocking Positions

Section X145 of the Manual of Regulations for Banks (MOR8) and Sections 4145Q and 414ON of the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI) are hereby amended as follows: Pursuant to Monetary Board Resolution No. 1475 dated 18 September 2014

Section 1. Section X145 Interlocking Directorships and/or Officerships.

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c. Interlocking Officerships

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secondments, between banks or, between a bank and a QB or an NBFI. xxx As a general rule, there shall. be no concurrent officerships, including

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officerships, including secondments may be allowed in the following cases: However, subject to prior approval of the Monetary Board, concurrent

XXX (5)Concurrent officership positions as corporate

bank/s, QB/sand NBFI/s, other than secretary or assistant corporate secretary between investment house/s, outside of those covered under item c(4) of this Section: Provided, That proof of disclosure to and consent from all of the involved FIs, on the concurrent officership positions, shall be submitted to the BSP.

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Section 2. Section 4145Q and 4140N Interlocking Directorships and/or Officerships.

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c. Interlocking Officerships

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As a general rule, there shall be no concurrent officerships, including secondments, between QBs or between a QB and a bank or between a QB and an NBFI.xxx

However, subject to prior approval of the Monetary Board, concurrent officerships, including secondments, may be allowed in the following cases:

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(6) Concurrent officership positions in the same capacity which do not involve

management functions, i.e., internal auditors, corporate secretary, assistant corporate secretary and security officer, between a QB and one (1) or more of its subsidiary QB/s and NBFI/s, or between a bank and one (1) or more of its subsidiary QBs and NBFIs,or between QB/s and/or NBFI/s or between bank/s, QB/s and NBFI/s, other than investment house/s: Provided, That in the last two..instances. at least twenty percent (20%) of the equity of each of the banks, QBs and NBFIs is owned by a holding company or by any of the banks/QBs within the group.

(7) Concurrent officership positions as corporate

secretary or assistant corporate secretary between QB/s and/or NBFI/s or between bank/s, QB/s and

by item c(6) of this Section: Provided, That proof NBFI/s, other than IH/s, outside of those covered

of disclosure to and consent from all of the involved FIS, on the concurrent officership positions, shall be submitted to the BsP.

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

FOR THE MONETARY BOARD:

AMANDO M. TETANGCO, JR. dovernor

30 September 2014