Personal Management Trust

BANGKo SeHTneL NG PILIPINAs OFFICE OF THE GOVERNOR ctRcutAR NO. s2o Series of 2Ot6 Subject: Personal Management Trust The Monetary Board, in its Resolution No. 1350 dated 2g July 20L6 approved the amendments to subsections X409.9/44ogQ9 of the Manual of Regulations for Banks (MoRB) and the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI), respectively, and the Financial Reporting Package for Trust Institutions to provide for the creation of the personal Management Trust: section 1. Existing provisions under subsection s x409.9/440ge.9 of the MORB/MoRNBFI are hereby dereted and shall now read as follows: "subsection x4o9.914409Q.9. Personal Management Trust. The guidelines on personal Management Trust accounts are as follows: a. Definition. Personal Management Trust (pMT) is a riving trustl created by an agreement whereby the trustor conveys property or a sum of money to be managed by the trustee, as the agreement dictates, generally for the preservation of the assets or property for future use of the beneficiaries and/or to answer for their current needs. The trustor may or may not nominate third-party beneficiary/ies. The trust agreement must specify the name/s of the beneficiary/ies. Upon effectivity of this Circular, no new Living Trust Account shall be established; consequently and for purposes of reporting, all valid and existing Living Trust Account shall now be considered as Personal Management Trust. lf the Living Trust Account (LTA) does not conform with LTA guidelines, it shall be considered as other Fiduciary Account. b. Minimum criteria2. A pMT account shall meet the following criteria: 1. Minimum entry amount and maintaining balance shall be equivalent to at least P100,000; Provided, That pMT with balances of up to P500,000 shall only be invested in deposits and government securities; 2' The agreement shall clearly state the specific purpose(s) for which the account was established which shall be consistent with the general objectives of the pMT ' Being a living trust, PMT becomes operational during the lifetime of the trustor as soon as the agreement is accomplished. ' This applies to the newly created PMT account upon the effectivity of the Circular.

I.4 , \J. which is the preservation of the assets or property for the future use of the beneficiaries and/or to answer for their current needs; The distribution clause shall clearly and specifically define the manner and conditions under which the assets (including income thereof) will be distributed. Any distribution/withdrawal of assets (including income thereof) shall be consistent with the purpose of the pMT, strictly in accordance with the distribution clause, and made only to the designated beneficiary/ies. Consequently, the trustee is expected to obtain adequate documentation to ensure the propriety of distribution/withdrawal of assets (including income thereof). Pre-printed PMT agreements may be allowed for expediency. provided, That the section for the trust purpose and the distribution clause shall not be pre-printed and shall be filled up only upon signing thereof by the trustor; 3. The length of PMT's existence should be consistent with the purpose of the trustor. Any termination for causes that are inconsistent with the purpose/distribution clause shall render the trustor ineligible from opening a new PMT within a period of one (1) year from termination date; and 4. Management of the trust assets shall be aligned with the investment objective/s and risk parameters set forth by the trustor. PMT accounts that do not meet any of the above criteria shall be considered as other fiduciary accounts subject to applicable reserves. c. Morketing. Officers and personnel of the Bank proper, including Branch Managers, shall not be allowed to market personal management trust products and sign pre- printed PMT agreements. However, Branch Managers/Officers may refer clients to the Trust Department and give a short introduction on the PMT product to prospective clients. d. Reserve Requirement. The PMT shall be subject to zero-percent reserve requirement. Section 2. The following are the amended sections of the Financial Reporting package for Trust Institutions (FRPTI): a. Manual of Accounts 'CONTRACTUAT RE TATIONSH I PS OF TRUST I NSTITUTIONS l. Trust - xxx XXX

(3) Individual Trust Accounts - xxx (a) Personal Trust - xxx (i) Personal Management Trust This refers to a living - trustl created by an agreement whereby the trustor conveys property or a sum of money to be managed by the trustee, as the agreement dictates, generally for the preservation of the assets or property for future use of the beneficiaries and/or to answer for their current needs. The trustor may or may not nominate third-party beneficiary/ies. The trust agreement must specify the name/s of the beneficiary/ies. ( ii) Testamentary Trust - xxx XXX,, a. Reporting Template The following reporting templates of the FRPTT shall be revised to replace "Living Trust" wath "Personol Monogement Trust", particularly ltem ,,(7)(a),, under "Additional lnformation" (line item no. B106) (Annex A): 1) schedule BS - Barance Sheet - consolidated (peso and FCDU) 2) Schedule A1 - Balance Sheet - peso Accounts 3) Schedule A2 - Balance Sheet - FCDU/EFCDU Accounts Transitory provision. Pending the release of the revised reporting template described above, the existing reporting template for Living Trust Account may be used for PMT accounts. Section 3. This Circular shalltake effect fifteen (15) days following its publication in the Official Gazette or in a newspaper of general circulation. FOR THE MONETARY BOARD: AQUINO I{Aucustzors 1 Being a living trust, pMT becomes operational during the lifetime of the trustor as soon as the agreement is accomplished.

Annex A AlBlclDl E G H _T 1 -t ted (Peso and FCDU) T T- 6 g Accgunt Description Account Code UITF 9 8E cdditional Information U9 1) NumberofAccounts 30000000050061 0000 9U 2) Total Number of Discretionary Accounts 300000001 0006.1 0000 91 Total Assets of Discretionary Accounts 30000000 1 000620000 92 3) Total Number of Non-Discretionary Accounts 300000001 500610000 9J Total Assets of Non-Discretionarv Accounts 300000001 500620000 94 4) Funds of GovernmenUGovernment Entities 300000002500600000 95 5) Specialized Institutional Accounts 96 (a) Number of Accounts 30000000300061 0000 97 (b) Total Assets 300000003000620000 9E 6) Tax ExeTpt Trust and Agency Accounts 99 (a) Individual/lnstitutional Trust and Agency Accounts 10[ (i) Number of Accounts 30000000350561 0000 101 (ii) Total Assets 300000003505620000 LO2 (b) Long-Term Common Trust Fund IUJ (i) Number of Accounts 30000000351 0610000 LO4 (ii) Total Assets 30000000351 0620000 1U5 7) Personal Trust 300000004500600000 10b (a) Personal Management Trust 300000004505600000 LOl (b) Testamentary Trust 30000000451 0600000 108 B) Basic Security Deposit (a) 1oh of average month-end balances of the total votume 300000005505600000 of the Trust & Agency Assets (excluding Securities Custodianship with SBL Agency Agreement) of the 109 preceding calendar quarter (b) 1125 of 1o/o ol total face value of securities under 30000000551 0600000 Securities Custodianship without SBL as Agency 110 Agreement Securities for Faithful Performance Deposited at BSp 300000005s1 5600000 1.1.1 112 Excess/(Deficiency) 300000005520600000 1L3 9) Reserves Against Peso Denominated Funds rL4 Required Reserves 300000006005600000 115 Les (a) Deposits with BSP 30000000601 0600000 ILE (b) Government Securities and Cash in Vault 30000000601 5600000 7lt Excess/(Deficiency) 300000006020600000 t l_8 1 0) Breakdown of Tlust & Agency Assets for the euarter J.I (a) First t\4onth of the Reporting period 30000001 0005600000 (o) 5econo Montn ot the Reporting period 30000001 001 0600000 J_27 G) f!,Id Month of the Reporting Period 30000001001 5600000 r22 Total Trust & Agency Assets for the Quarter 30000001 0020600000 L23 Average Trust & Agency Assets for the OuartEi-T 30000001 0025600000 124

Annex A AlBlclol E z-t 1 Report on Trust and Other Fiduciary Services Schedule 41 _T T_ 6 / g Account Description Account Code UITF 9 88 \dditaonal I nformation 89 1) Number of Accounts 30000000050061 0000 90 2) Total Number of Discretionarv Accounts 300000001 00061 0000 9L Total Assets of Discretionarv Accounts 300000001 000620000 92 9I_IS!C] Num ber of Non-Discretionary Accounts 300000001 50061 0000 93 Total Assets of Non-Discretionary Accounts 30000000 1 500620000 94 4) Funds of GovernmenUGovernment Entities 300000002500600000 95 5) Specialized Institutional Accounts 9b (a) Number of Accounts 30000000300061 0000 9/ (b) Total Assets 300000003000620000 98 6) Tax Exempt Trust and Agency Accounts 99 (a) Individual/lnstitutional Trust and AqencV Accounts (i) Number of Accounts 30000000350561 0000 101 (ii) Total Assets 300000003505620000 LO2 (b) Long-Term Common Trust Fund 103 (i) Number of Accounts 30000000351 061 0000 TU4 (ii) Total Assets 30000000351 0620000 1U5 7) Personal Trust 300000004500600000 10b (a) Personal Management Trust 300000004505600000 u)1 (b) Testamentary Trust 3000000045 1 0600000 108 8) Basic Seculity Deposit (a) 'lo/o of average month-end balances oitheloGl GlumJ 300000005505600000 of the Trust & Agency Assets (excluding Securities Custodianship with SBL Agency Agreement) of the 109 preceding calendar quarter (b) '1125 of 1o/o of total face value of securities under 30000000551 0600000 Securities Custodianship without SBL as Agency L10 Agreement Securities for Faithful Performance OepositeO at BSp 30000000551 5600000 ILl LI2 Excess/( Deficiency) 300000005520600000 113 9) Reserves Against Peso Denominated Fundi tL4 Required Reserves 300000006005600000 11 Les (a) Deposits with BSP 30000000601 0600000 116 (b) Government Securities and Cash in Vatrlt 30000000601 5600000 t!7 Excess/(Deficiency) 300000006020600000 1 l-8 10) Breakdown of Trust & Agency Ass.ts fo, the auaE; r.19 (a) First Month of the Reporting period 3000000 1 0005600000 L20 (b) Second Month of the Reporting peiiod 30000001 001 0600000 L2l (c) Third Month of the Reportinq period 30000001 001 5600000 122 Total Trust & Agengy Assets for the euarter 30000001 0020600000 123 Average Trust & Agency Assets for the euarter 30000001 0025600000 124

. ;- | Jl . 'a I . Annex A A Report on Trust and Other Fiduciary Services Schedule A2 Balance Sheet FCDU / EFCDU Accounts Account Code 1) Number ofAccounts Total Number of Di 300000001 000610000 Total Assets of Discretionarv Accounts 3) Total Number of 300000001 50061 0000 Total Assets of Non-Discretionary Accounts 4) Funds of GovernmenVGovernment Entities ) Number of Accounts Tax Exempt Trust and Agency Accounts (a) Individual/lnstitutional Trust and Aqencv Accounts Number of Accounts Term Common Trust Furrd 30000000351 061 0000 (b) Testamentary Trust (a) 1% of average month-end balances of the total volume of the Trust & Agency Assets (excluding Securities Custodianship with SBL Agency Agreement) of the preceding calendar quarter (b) 1125 of 1o/o ol total face value of securities under Securities Custodianship without SBL as Agency Agreement Securities for Faithful Performance Deoosited at BSP 9) Reserves Against Peso Denominated Funds Government Securities and Cash in Vault 1 0l Breakdown of Trust & Agency Assets for the Quarter ) Second Month of the Reportinq Period Third Month of the Reportinq Period 30000001 001 5600000 Total Trust & Aqencv Assets for the Quarter Trust & Agency Assets for the Quarter