BSP tightens license rules for sellers of UITF
Agents of financial institutions who sell participation in pooled trust funds must now pass a rigorous licensing program to help ensure that clients are fully apprised of the risks involved in these investments.
In a statement, the Bangko Sentral ng Pilipinas said its policy-making Monetary Board recently approved the amendment of existing regulations to strengthen the qualification requirements of Unit Investment Trust Fund (UITF) marketing personnel.
“The new rule requires all personnel involved in the sales and marketing of UITF to be certified through a certification program administered by a reputable financial services industry association/organization acceptable to the BSP,” the regulator said.
UITFs are investment products where clients pool funds into a single investment vehicle, which is then managed by a financial institution like a bank or insurance company. It is similar to a mutual fund, which is run by a non-bank firm.
According to the central bank, the UITF certification program is a three-pronged process composed of a qualifying examination, a requirement for continuing education and a requirement for registration to monitor and manage the certified UITF marketing personnel.
Only agents who pass the exam will be conferred the title of “Certified UITF Marketing Personnel”, the BSP said.
All accredited and licensed agents will also be required to undergo training, seminars and conferences annually to maintain an active status.
“The UITF Certification Program is expected to further advance the quality of marketing personnel and their sales and marketing practices,” the central bank said. “It will likewise ensure that the marketing personnel can provide sufficient information on UITF to clients as well as promote delivery of safe and effective products and services.”
To ensure orderly transition of existing UITF marketing personnel, the new rule includes a transitory provision, which allows existing agents to be certified under the program until 2021.
