245 WITHOUT RECOURSE TRANSACTIONS
a. other banks;
d. insurance companies;
e. finance companies;
f. investment companies;
g. pension or retirement plan maintained by the government of the Philippines or any political subdivision thereof or managed by a bank or other persons authorized by the Bangko Sentral to engage in trust functions;
h. funds managed by another bank or other entities duly authorized to engage in trust or other fiduciary business; and
i. such other person as the SEC may by rule determine as qualified buyers, on the basis of such factors as financial sophistication, net worth, knowledge, and experience in financial and business matters, or amount of assets under management.
a. Securities sold on a without recourse basis allowed under this Section shall be delivered directly to the purchaser or to the purchaser’s designated Bangko Sentral accredited securities custodian or SEC authorized central securities depository in accordance with the guidelines set forth in Appendix 73. The securities custodian shall hold the securities in the name of the buyer: Provided, That a bank authorized by the Bangko Sentral to perform custodianship function or an SEC-authorized central securities depository may not be allowed to be custodian/depository of securities issued or sold by said custodian or central securities depository, by entities belonging to the same financial conglomerate or banking group as that of the custodian or depository, or of securities in bearer form.
(1) Monetary penalties
First offense – Fine of P10,000 a day for each violation reckoned from the date the violation was committed up to the date it was corrected.
Subsequent offenses – Fine of P20,000 a day for each violation reckoned from the date the violation was committed up to the date it was corrected.
(2) Other sanctions
First offense – Reprimand for the directors/officers responsible for the violation.
Subsequent offense –
(a) Suspension for ninety (90) days without pay of directors/officers responsible for the violation;
(b) Suspension or revocation of the accreditation to perform custodianship function;
(c) Suspension or revocation of the authority to engage in quasi-banking function; and/or
(d) Suspension or revocation of the authority to engage in trust and other fiduciary business.
b. The guidelines to implement the delivery by the seller of securities to the buyer or to his designated securities custodian or central securities depository are shown in Appendix 73.
a. Suspension of quasi-banking authority for a period of six (6) months; and
b. Monetary penalty of P500 per day per transaction for each officer of the bank involved in any capacity in any transaction violative of these regulations.
(Circular No. 873 dated 25 March 2015)