The central bank’s Monetary Board has allowed banks to tap third party distributors for their unit investment trust funds (UITFs) as part of efforts to promote financial inclusion and ensure the growth of the trust industry.
“Through this policy, agents are expected to bring products closer to investors. At the same time, it is an opportunity for the industry to grow assets under management through partnerships with distributors. More products in the market will also bode well for capital market development,” said Bangko Sentral ng Pilipinas Governor Benjamin Diokno.
Trust corporations currently distribute their UITFs through their main offices.
To qualify as distributors, Diokno said third-party providers must follow stringent qualification standards.
Individual agents and employees of institutional agents must meet the qualifications for UITF marketing personnel while institutional agents must be reputable and duly licensed by appropriate regulatory agencies to distribute financial products.