BSP issues reporting rules of trust companies
The Bangko Sentral ng Pilipinas (BSP) has issued the financial reporting package (FRP) of trust corporations and its adoption beginning in September.
In the circular memo, BSP Governor Nestor A. Espenilla Jr. said trust corporations – authorized by the central bank to engage in trust and other fiduciary business – are required to prepare the FRP for their proprietary activities on solo basis or the combined financial statements of the corporation’s head office and branches.
BSP Circular No. 967 also amended the reportorial requirements of trust entities which are banks or non-bank financial institutions with trust units.
The circular included revisions to the Financial Reporting Package for Trust Institutions such as breakdown of trust and agency assets and the preparation of assets net of securities custodianship.
The FRP for trust corporations, as defined by the BSP, is a set of financial statements for prudential reporting purposes. It includes the balance sheet and supporting schedules. The FRP is primarily designed to align the BSP reportorial requirements with the provisions of the Philippine Financial Reporting Standards, the Philippine Accounting Standards and to meet BSP statistical requirements, according to the circular.
The solo basis reporting is every quarter and the FRP structure includes both pesodenominated accounts and foreign currency denominated accounts.
The BSP has also issued new rules on trust entities’ management of clients’ asset and investment portfolio for more transparency and to give it flexibility.
The revised policy is consistent with the thrust of the BSP to adopt a differentiated regulatory approach based on the major business activities and investment mandate of trust entities to improve operational efficiency.