GUIDELINES ON THE USE OF SCRIPLESS SECURITIES
AS SECURITY DEPOSIT FOR THE FAITHFUL PERFORMANCE OF PERSONAL EQUITY AND RETIREMENT ACCOUNT (PERA) ADMINISTRATOR
(Appendix to Sec. 417 on Basic Security Deposit)
Definition of Terms and Acronyms
BSP – Bangko Sentral ng Pilipinas
BSP-FAD – Financial Accounting Department of the BSP
BSP-SES – Supervision and Examination Sector of the BSP
DDA – refers to the regular demand deposit account of a bank with BSP-FAD
DSSA – Daily Statement of Securities Account
Financial lnstitution (Fl) – refers to a bank, non-bank financial institution, or trust entity supervised by the BSP that is accredited to be a PERA Administrator
MORB/MORNBFI – Manual of Regulations for Banks/ Manual of Regulations for Non-Bank Financial Institutions
Off-site Supervising Department – refers to the department of the BSP-SES responsible for off-site supervision of Fls
Scripless Securities – refers to uncertificated securities issued by the Bureau of the Treasury (BTr) that are under the BTr’s Registry of Scripless Securities (RoSS)
Trust Specialist Group (TSG) – refers to the technical unit of the BSP-SES responsible for supervision of trust entities
A. Basic Requirements
1. The BSP-SES shall file with the BTr an application to open a BSP-PERA RoSS principal securities account where the securities for the faithful performance of PERA Administrator shall be held. The BSP- SES shall use Annex 1 for this purpose.
2. The BSP-SES through its TSG shall request with the BTr the creation of a PERA Administrator securities account under the BSP-PERA RoSS principal securities account using Annex 1-A. The BTr shall maintain each PERA Administrator securities account for P1,000.00 or any amount per month as may be determined by the BTr.
3. An Fl must have a DDA with BSP- FAD. In case when an Fl does not have a DDA with BSP-FAD, it shall designate a settlement bank and shall inform the appropriate BSP-SES off-site 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 RoSS principal securities account. The document shall authorize the BTr and the BSP to credit the DDA of the FI or the designated settlement bank with BSP-FAD 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 BSP-FAD shall use Annex 2-A while an FI with a settlement arrangement shall use Annex 2-B.
5. The BSP-SES off-site supervising department shall be responsible for monitoring deposit and withdrawal of securities in the PERA Administrator securities account.
6. Every Fl shall ensure that it has adequate security for the faithful performance of PERA Administrator pursuant to the provisions of the Personal Equity and Retirement Account (PERA) Act of 2008 and its implementing rules and regulations.
7. The BTr shall provide TSG a monthly statement of securities account as well as a DSSA whenever a transaction in any PERA Administrator securities account is made.
8. The responsible BSP-SES off-site supervising department shall determine on a quarterly basis the compliance with the security for the faithful performance of PERA Administrator based on the reportorial submission of the Fl. In case of deficiency, the responsible BSP-SES off-site supervising department shall recommend, as warranted, the imposition of sanctions and/or any other appropriate action to higher BSP authorities.
B. Procedures for Assigning Initial/ Additional RoSS Securities as Security for the Faithful Performance of PERA Administrator
1. The Fl shall notify the appropriate BSP-SES off-site supervising department that it will transfer RoSS securities to its PERA Administrator securities account at least two (2) banking days before the date of transfer using the prescribed form (Annex 3) and checking Box “A” or “B”, as appropriate, and indicating details therein. The notice, which may initially be sent through electronic mail or fax, shall be forwarded as an official letter duly signed by authorized officer/s and shall be accompanied by the following:
a. Computation of compliance with the security for the faithful performance of PERA Administrator. The Fl shall provide detailed calculation on specific and relevant dates whenever there is a transfer of RoSS securities to and from its PERA Administrator securities account using Annexes 4 and 4-a to affirm the continuing compliance with the security requirement; and
b. Notarized certification signed by the chief executive officer of the Fl using Annex 5 attesting:
i. The accuracy and completeness of submitted reports and corresponding schedules; and
ii. The effective interest rate method is being used in the amortization of relevant premium/discount of securities in compliance with the Philippine accounting standards.
2. The Fl shall instruct the BTr to transfer RoSS securities to its PERA Administrator securities account on specified date.
3. The BTr shall effect the transfer upon verification of RoSS balances. At the end of the day, the BTr shall transmit a DSSA to TSG containing the transfer.
4. The TSG shall provide the appropriate BSP-SES off-site supervising department a copy of the DSSA.
5. The responsible BSP-SES off-site supervising department shall verify from the DSSA the transfer of securities indicated in the advice (Annex 3) sent earlier by the Fl.
6. The above procedures shall also be observed in transferring additional securities to replace maturing/matured RoSS securities.
C. Procedures for Withdrawing RoSS Securities
1. The Fl shall notify the appropriate BSP- SES off-site supervising department that it will withdraw existing RoSS securities assigned as security for faithful performance of PERA Administrator at least two (2) banking days before the date of withdrawal using the prescribed form (Annex 6) and indicating the details of the securities to be withdrawn. The notice shall be accompanied by a computation of compliance with security requirement and certification required under B.1.
2. The responsible BSP-SES off-site supervising department shall verify if the securities to be withdrawn are in the PERA Administrator securities account and the value of outstanding securities remains compliant with the security requirement after the withdrawal. The department concerned shall immediately inform the Fl for any discrepancy/deficiency. lf in order, the department concerned shall authorize TSG to instruct the BTr to transfer the securities to be withdrawn to the RoSS account of the Fl. The BSP-SES off-site supervising department shall use Annex 7 and check boxes “B” and “C”. The authority to allow the withdrawal should be transmitted to TSG one (1) banking day before the date of withdrawal indicated in the advice (Annex 6) sent earlier by the Fl.
The BSP-SES off-site supervising department shall also advise the Fl that it has approved the withdrawal of security using Annex 8 and checking boxes “B” and “C”.
3. The TSG shall instruct the BTr within the same day to transfer the securities specified to be withdrawn from the PERA Administrator securities account to the RoSS account of the Fl using Annex 9. The BTr shall acknowledge receipt of the confirmation of transfer of government securities (sans consideration).
4. The BTr shall effect the transfer/ withdrawal and shall send a DSSA to TSG containing the transfer/withdrawal.
5. The TSG shall provide the appropriate BSP-SES off-site supervising department a copy of the DSSA.
6. The responsible BSP-SES off-site supervising department shall verify from the DSSA the transfer of securities indicated in the advice (Annex 6) sent earlier by the Fl.
7. The above procedures shall also be observed in withdrawing and replacing existing and/or maturing/matured RoSS securities.
D. Procedures for Replacing RoSS Securities
1. The Fl shall notify the appropriate BSP-SES off-site supervising department that it will replace existing and/or maturing/ matured RoSS securities assigned as security for the faithful performance of PERA Administrator at least two (2) banking days before the date of replacement using the prescribed form (Annex 3). The Fl shall check box “C” of the form and indicate the details of the securities to be replaced. The notice shall be accompanied by a computation of compliance with security requirement and certification required under B.1.
2. The responsible BSP-SES off-site supervising department shall verify if the securities to be replaced are in the PERA Administrator securities and the value of the outstanding securities remains compliant with the security requirement after the replacement. The department concerned shall immediately inform the Fl for any discrepancy/deficiency.
3. The procedures for assigning additional RoSS securities specified in sections B.2 to B.5 of this Appendix shall herein apply.
4. The BSP-SES off-site supervising department shall use Annex 7 and check boxes “A” and “C”. Should there be any discrepancy/deficiency; the BSP-SES off-site supervising department shall immediately inform the Fl. The authority to allow the replacement shall be transmitted to TSG not later than the day when the replacement securities were transferred to the PERA Administrator securities account.
The BSP-SES off-site supervising department shall also advise the FI that it has approved the replacement of security by using Annex 8 and checking boxes “A” and “B”.
5. The procedures for withdrawing RoSS securities specified in sections C.3 to C.6 of this Appendix shall herein apply.
E. Procedures for Crediting Interest and Maturity Proceeds of Securities
1. On coupon or interest payment date, the BTr shall instruct BSP-FAD to credit the DDA of the Fl or its designated settlement bank for coupon/interest payment of securities held in the PERA Administrator securities account.
2. On maturity date, the BTr shall instruct BSP-FAD to credit the DDA of the Fl or its designated settlement bank for maturity proceeds of securities held in PERA Administrator securities account.
3. The appropriate BSP-SES off-site supervising department shall determine if the value of the outstanding securities remains compliant with the security requirement after the maturity of securities. The department concerned shall immediately inform the Fl for any discrepancy/deficiency.
4. When the value of security falls below the required level, the Fl shall instruct the BTr to transfer securities from the Fl’s own RoSS account to its PERA Administrator securities account under the BSP-PERA RoSS principal securities account. The procedures specified in sections B.1 to B.5 of this Appendix shall herein apply.
(Circular No. 879 dated 22 May 2015)
_______________________________________________________________________________
Annex 1
SUPERVISION AND EXAMINATION SECTOR
(Date)
_________________________________
Treasurer of the Philippines
Bureau of the Treasury
Cabildo Street corner
A. Soriano Avenue and
Sto. Tomas Street,
Intramuros, Manila
Attention: Registry of Scripless Securities (RoSS)
Dear________________________:
Very truly yours,
___________________
Deputy Governor
_______________________________________________________________________________
Annex 1-A
SUPERVISION AND EXAMINATION SECTOR
(Date)
_________________________________
Treasurer of the Philippines
Bureau of the Treasury
Cabildo Street corner
A. Soriano Avenue and
Sto. Tomas Street,
Intramuros, Manila
Attention: Registry of Scripless Securities (RoSS)
Dear Ms. ________________________:
| Name of Trust Entity/Bank | Name of Settlement Bank, where required |
| 1. ___________________________ 2. ___________________________ 3. ___________________________ |
___________________________ ___________________________ ___________________________ |
Very truly yours,
___________________
Authorized Signatory
_______________________________________________________________________________
Annex 2-A
To be used by an FI with own demand deposit account for BSP-FAD
Letterhead of Financial Institution
AUTODEBIT/AUTOCREDIT AUTHORIZATION
___________________
Authorized Signatory
_______________________________________________________________________________
Annex 2-B
To be used by an FI with settlement arrangement with a bank
Letterhead of Financial Institution
AUTODEBIT/AUTOCREDIT AUTHORIZATION
______________________________________
(Authorized Signatory of Settlement Bank)
______________________________________
(Authorized Signatory of Financial Institution)
_______________________________________________________________________________
Annex 3
Letterhead of Financial Institution
Date:
The Director
Name of Off-site Supervising Department
Bangko Sentral ng Pilipinas
A. Mabini St., Manila
Dear Sir:
We are transferring on (indicate date of transfer) the following securities to our PERA Administrator Securities Account as our security for the faithful performance of PERA Administrator pursuant to Republic Act No. 9505 also known as the Personal Equity and Retirement Account (PERA) Act of 2008 and its implementing rules and regulations.
| Type | ISIN | Purchase Date |
Issue Date |
Due Date |
Remaining Tenor1 |
Face Amount |
Purchase Price |
We are transferring the above securities:
a. ☐ As our initial security
b. ☐ As an additional security
c. ☐ To replace the following security/ies which we earmarked on (date).
| Type | ISIN | Purchase Date |
Issue Date |
Due Date |
Remaining Tenor2 |
Face Amount |
Purchase Price |
d. ☐ To replace matured securities the redemption value of which P______________ is credited to deposit account or that of our settlement bank with BSP-Financial Accounting Department.
Very truly yours,
________________________________
Name and Designation of Authorized Signatory
_______________________________________________________________________________
Annex 4
Name of Financial Institution
Computation of Security for the Faithful Performance
of PERA Administrator
As of (date)
5. EXCESS (DEFICIENCY)P________P________P________P________
| FOR THE QUARTER ENDED (Date) | ||||
| 1st Month | 2nd Month | 3rd Month | 4th Month | |
| A. COMPUTATION OF AVERAGE BALANCES | ||||
| 1. Securitied Held by the PERA Administrator | P________ | P________ | P________ | P________ |
| B. SECURITY REQUIREMENT | Book Value | |||
| 1. Security Requirement (1% of A.1 (Ave.) above | ||||
| As of (Transaction date)3 | ||||
| 2. Inventory of Outstanding Securities held by the PERA Administrator (Beginning Balance) (Face Value P ___ million) |
||||
| 3. Add (Subtract) Securities earmarked (matured/replaced) – (Face Value P ___ million) |
||||
| 4. Outstanding Securities held by the PERA Administrator (Ending Balance) (Face Value P ___ million) |
P________ | |||
| 5. EXCESS (DEFICIENCY) | P________ | |||
_______________________________________________________________________________
Name of Financial Institution
SECURITIES FOR THE FAITHFUL PERFORMANCE OF PERA ADMINISTRATOR UNDER REGISTRY OF SCRIPLESS SECURITIES (RoSS)
As of (Transaction Date)
| A | B | C | D | E | F E-C |
G | H F-G |
J A-B |
K | L J-K |
M A-L |
||
| ISIN | SECURITY/IES (At Face Value) |
SECURITY/IES (At Acquisition Cost) |
PURCHASE DATE | ISSUE DATE |
MATURITY DATE | Original No. of days | REMAINING TENOR TO DATE | NO. OF DAYS DISCOUNT/ (PREMIUM) EARNED |
AMOUNT OF DISCOUNT/ (PREMIUM) |
AMOUNT OF AMORTIZED DISCOUNT/ (PREMIUM) |
REMAINING AMOUNT OF DISCOUNT (PREMIUM) | Book Value | |
| – | |||||||||||||
| – | |||||||||||||
| 1. Outstanding Gov’t securities (Beginning Balance) |
|||||||||||||
| 2. Add: Securities on (date) | |||||||||||||
| Subtotal | |||||||||||||
| 3. Less: Measured/Replaced Securities on (date) | |||||||||||||
| – | |||||||||||||
| Subtotal | |||||||||||||
| 4. Outstanding Gov’t Securities | |||||||||||||
| (Ending Balance) | |||||||||||||
_______________________________________________________________________________
Annex 5
(NAME OF FINANCIAL INSTITUTION)
CERTIFICATION
(DATE)
1. The computation of security for the faithful performance of PERA Administrator and relevant schedule of inventory of outstanding securities under RoSS are true and accurate; and
2. The effective interest rate method is being used in the amortization of relevant premium/ discount of securities in compliance with the Philippine accounting standards.
___________________________
Authorized Officer/Signatory
_______________________________________________________________________________
Annex 6
Letterhead of Financial Institution
Date:
The Director
Name of Off-site Supervising
Department Bangko Sentral ng Pilipinas
A. Mabini St., Manila
Dear Sir:
We hereby advise you of our decision to withdraw on (indicate date of transfer) the following securities used as security for the faithful performance of PERA Administrator from our PERA Administrator Securities Account.
| Type | ISIN | Purchase Date |
Issue Date |
Due Date |
Remaining Tenor4 |
Face Amount |
Purchase Price |
Very truly yours,
Name and Designation of Authorized Signatory
_______________________________________________________________________________
Annex 7
MEMORANDUM
Name of Off-site Supervising Department
| For: | The Head Trust Specialist Group |
| From: | The Authorized Officer |
| Subject: Date : |
Scripless Securities for the Faithful Performance of PERA Administrator |
In connection with the request of (indicate name of Financial Institution) dated_____________to:
a. ☐ Replace outstanding RoSS securities
b. ☐ Withdraw RoSS securities
You are hereby authorized to:
c. ☐ Instruct the Bureau of the Treasury to transfer the following securities to the RoSS Account of (Name of Financial Institution).
| Type | ISIN | Purchase Date |
Issue Date |
Due Date |
Remaining Tenor5 |
Face Amount |
Purchase Price |
____________________
Authorized Signatory
_______________________________________________________________________________
Annex 8
NAME OF OFF-SITE SUPERVISING DEPARTMENT
(Date)
(Name of Financial Institution)
(Address)
Subject: Scripless Securities for the Faithful Performance of PERA Administrator
Dear______________________:
We are pleased to inform you that we have approved your request dated__________________to:
a. ☐ Replace outstanding RoSS securities
b. ☐ Withdraw RoSS securities
Accordingly, we have authorized the Trust Specialist Group to:
d. ☐ Instruct the Bureau of the Treasury to transfer the following securities to your RoSS accounts
Very truly yours,
______________________
Authorized Signatory
_______________________________________________________________________________
Annex 9
TRUST SPECIALIST GROUP
Transaction No._______________
Value Date_______________201x
The Director
Liability Management
Service The Bureau of the Treasury
Cabildo Street corner A. Soriano Avenue and
Sto. Tomas Street, Intramuros, Manila
Attention: Registry of Scripless Securities (RoSS)
Subject: RoSS Securities of PERA Administrator
CONFIRMATION OF TRANSFER OF GOVERNMENT
SECURITIES (GS) SANS CONSIDERATION
| Type/ISIN | Issue Date | Due Date | Face Amount | Purchase Price |
(NAME OF AUTHORIZED SIGNATORY)
Designation
REGISTRY OF SCRIPLESS SECURITIES
This is to acknowledge receipt of the Confirmation of Transfer of Government Securities (Sans Consideration) of Bangko Sentral ng Pilipinas – Supervision and Examination Sector, BSP-PERA.
_____________________
RoSS
Bureau of the Treasury
Footnotes
- Reckoned from actual date of transfer/withdrawal.
- Reckoned from actual date of transfer/withdrawal.
- For multiple transaction dates, the FI shall provide separate calculation of Annex 4-A for each specific and relevant dates
- Reckoned from actual date of transfer/withdrawal.
- Reckoned from actual date of transfer/withdrawal.