BSP exempts PERA-UITFs from access restrictions for central bank debt

PERSONAL EQUITY and Retirement Account unit investment trust funds (PERA-UITFs) are now exempted from a foreign ownership rule that limited their access to central bank securities, widening overseas Filipinos' investment options.

- K.K. Chan

Circular No. 1220 issued by the Bangko Sentral ng Pilipinas (BSP) on Oct. 17 said the Monetary Board has amended its rules covering monetary operations to exclude PERA-UITFs from the limit imposed on UITFs with nonresident participants that are investing in central bank securities in the secondary market.

"UITFs were previously allowed to invest in these securities provided nonresidents didn't own more than 10% of the fund. The amendments in the regulations exempt UITFs accredited by the BSP as PERA-UITFs from that limit," the central bank said.

"This recognizes that PERA-UITF participants may include overseas Filipinos who may be considered as nonresidents under existing rules. The amendments are intended to align with the distinct features and policy objectives of the PERA program," the BSP added.