BSP Extends Transitory Period For UITF Certification Until 2023
The Bangko Sentral ng Pilipinas (BSP) extends the transitory period for the certification of marketing personnel authorized to sell unit investment trust funds (UITFs) until 2023 in the Philippines.
Previously, the transitory period for the UITF certification was only until 2022.
BSP Governor Benjamin E. Diokno signed a circular stating the approval of the certification requirement to be extended from 2022 to 2023.
The UITF certification program is part of the stricter rules implemented by the BSP to enhance consumer protection. The program aims to improve the quality of sales and marketing practices of the UITF marketing personnel, ensuring that financial customers will have sufficient information regarding the UITF.
Additionally, the BSP also recently approved a rule that permits trusts corporations to sell and distribute UITFs through third parties such as individual and institutional agents.
Authorized sellers who fail to obtain the certification could face restrictions in further selling UITFs.
The BSP Circular No. 1103 states that “During the transitory period, UITF Marketing Personnel authorized to sell UITFs under the existing requirements, which shall undergo and fail to pass the UCP, will forfeit their existing qualification and will not be allowed to sell UITF until such time that they obtain the required certification.”
The UITF program was first approved in 2018, which requires UITF sellers and personnel to be certified by a reputable financial services organization approved by the BSP.