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Good News for Trust Investors of Urban
Posted November, 2000
     The Securities and Exchange Commission on 10 November 2000, on motion of clients of the Romulo Mabanta Buenaventura Sayoc and De Los Angeles, represented by The Trust Guru, ordered the Interim Receiver of Urbancorp Investment, Inc. to give an accounting of their trust holdings in URCOIN and in individually managed trust accounts as of April 25, 2000, the day immediately prior to the closure of Urban Bank. The order is significant because an accounting of what their accounts contain by way of assets and liabilities will enable the trust investors to intelligently evaluate their options with respect to the proposed handling of their investments under the rehabilitation plan proposed by the Bank of Commerce. The Bank of Commerce is scheduled to do a road show during the week of November 13 –17, 2000 to secure the approval of the Bank and the Investment House’s creditors to their rehab plan. The briefing scheduled for Metro Manila investors is at 9 a.m. ,Nov. 15,2000 at the 36th Floor, Urban Bank Plaza, Makati City.
 
 
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SEC Chief PASSES first 100 days test with flying colors!

Most Objectives achieved and the remainder underway. That’s our rating of the incumbent SEC Chair’s performance during her first one hundred days in office. A few months back, The Trust Guru featured the first public address of the Hon. Lilia R. Bautista as Chairperson of the Securities and Exchange Commission. [Scroll down for feature] In her speech before the Makati Business Club, she set out her priorities and listed the major objectives she wanted to pursue in the first months of her tenure. [For a full text of her speech, click on News and Views.] At the end of the rating period, here is our evaluation:

 
Guest Register

 

 

 

 

 

 

 

 

 

 

 

Report Card
Name: LILIA R. BAUTISTA
Class: Securities and Exchange Commission
Rating Period: After 100 days in office

Subject

Completed?
In Process?
Abandoned?

Remarks

1. Resolution of the BW case Completed Will pursue at the DOJ & the courts
2. Passage of the proposed Securities Act Completed Rules being drafted
3. Review of rules of the PSE Completed Will be amended with new law
4. Take very concrete steps towards improving the credibility and image of the SEC and its employees Partially done o Reshuffling of employees
o Reorganization under discussion
o Transfer of quasi-judicial function to regular courts
5. Promote competition in the market In process This is a continuing process

Congratulations, Madame Chair, For the sake of our country, please keep up the good work!

 

 

 

 

 

 

SEC Limits Investment Discretion of Pre-need Trust Funds
Posted July 2000
     To ensure the liquidity of trust funds to guarantee the delivery of the benefits promised by pre-need plans and at the same time enable the trust funds to obtain sufficient capital growth to meet their growing actuarial reserve liabilities, the SEC recently issued Memorandum Circular No. 1, series of 2000, promulgating rules on how the trust funds of pre-need companies are to be invested. Among the salient provisions:
1. maximum exposure to long-term commercial papers is 15% of total trust fund and maximum exposure to each commercial paper issuer is 10% of such 15%;
2. direct loans are limited to companies that are financially stable, making profits for the last three years and with a good track record of paying their previous loans from pre-need companies;
3. investments in mutual funds must be with those registered with the Securities and Exchange Commission;
4. maximum investments in stocks (which are limited to those listed in the big board of the PSE) is 25% of total trust fund equity and maximum exposure to a stock issuer is 10% of the 25%;
5. investments in real estate are to be recorded at acquisition cost and only in those free from liens and encumbrances.
Trustees are expected to exercise due diligence for the protection of the plan holders and are required to maintain a liquidity reserve sufficent to cover the benefits due to planholders curing the ensuing year but in no case less than 20% of the net asset value of the trust fund.

    For the full text of Memorandum Circular No. 1, Series of 2000, is found in Administrative Issuances.

 

 

 

 

 

 

 

 

General Banking Law of 2000
Posted May 2000
     After nearly three years in the making, the General Banking Law of 2000 was signed by the President on May 23, 2000.   It takes effect fifteen (15) days following its publication in the Official Gazette or  in two (2) national newspapers of general circulation.  For a full   text of the new law, click on Law and Jurisprudence.

Trust Institute Foundation's New Graduates
Posted May 2000
     Rosola A. Vivas
, of Equitable PCI Bank, heads the 81 graduates of Trust Institute Foundation of the Philippines’ for the year 2000. Completing the ten-month course with a grade of 95.79%, with Excellence, Ms. Vivas wins the privilege of attending, at the expense of TIFP, the trust course conducted by the American Bankers Association this year. Close second was Rowena G. Valdez of All-Asia Capital who was rated 95.67% with Excellence. AB Capital’s Robby Patrick H. Café was third, with Distinction at 95.14%. For a complete list of all the graduates (with their individual citations) and a ranking of the top ten, please click on the Trust Institute Foundation of the Philippines’ logo.

 

 

 

 

Could it be that Urban Bank was due to bad legal advice?
Posted Sept, 2000

     Philippine Deposit Insurance Corporation President, Norberto C. Nazareno,seems to think so.  In his speech before the Rotary Club of Manila, Mr. Nazareno expressed the  view that Messers. Arsenio M. Bartolome III and Teodoro C. Borlongan, Chairman and President, respectively, of Urban Bank "were ill-advised, if ever they sought legal counsel."  Nazareno continues, "I think both had the impression that they will still have about a month to try to fix things up."   Recounting in detail how he was progressively drawn to the vortex of the most recent bank failure in the country Nazareno recalled the last days prior to Urban Bank's unilateral declaration of a holiday and the Bangko Sentral's swift response of receivership and gave his listeners, many of whom had one way or another been affected by the bank failure, what to expect as the PDIC pursues its mandate of protecting bank depositors.    
     The full text of Mr. Nazareno's speech is in News & Views.
 









 

 

 

 

 

bautista.jpg (5183 bytes) NEW SEC CHIEF STATES
HER PRIORITIES

Posted April, 2000
     Trust practitioners whose portfolios have substantial holdings in shares traded in the Philippine Stock Exchange are eagerly awaiting the deliverables promised by the newly-installed chief of the Philippine Securities and Exchange Commission, Atty. Lilia R. Bautista.  In her first speaking engagement since her appointment, the SEC chief lists the following as her priority concerns within the first one hundred days of her tenure:   
     First, the resolution of the BW case; Second, the passage of the Revised Securities Act; Third, the review of the rules of the Philippine Stock Exchange, with the specific objective of finding ways for the SEC to enforce rules whenever the PSE itself fails to do so; Fourth, the improvement of the credibility and image of the SEC and its employees; and Fifth, the promotion of competition in the market.
    
    
The full text of her speech is reproduced in News & Views. 
  

paeng2a.jpg (11043 bytes)
INSIST ON GOOD GOVERNANCE, BSP Gov. tells trust officers


Posted April, 2000
  
Bangko Sentral ng Pilipinas Governor, Rafael B. Buenaventura, asked Philippine trust officers during their general membership meeting on 31 March 2000 at the Westin Philippine Plaza, CCP Complex, Roxas Blvd., Manila, to insist on good corporate governance from the issuers of the financial instruments and investments being held by them as managers of their clients' funds.  He gave the Trust Officers Association of the Philipines an update of the reforms instituted by the BSP to assist the government develop the capital market and indicated the major policy directions that will be taken by the central monetary authority in the furtherance of its mandate under the constitution and its legal charter.  The full text of Mr. Buenaventura's address is available at News & Views
     Prior to Mr. Buenaventura's speech, the TOAP elected the members of its Board of Directors for 2000 - 2001.  The new board will be composed of Atty. Alegria R. Legaspi of All-Asia Capital &Trust Corporation; Ma. Lourdes M. Ferrer of Solidbank Corporation; Rolando Esquerra of Equitable PCI Bank; Josefina S. Carballo of Citibank, N.A., Eduardo B. Chaves of AB Capital & Investment Corporation; Adelbert A. Legasto of Bank of the Philippine Islands; Josefina E. Sulit of Metrobank Corporation; Marilen Sarmiento of United Coconut Planters Bank; and Raul Diaz of United Overseas Bank.  The new board will be meeting shortly to elect its officers for the incoming term.