IC tightens...

capital, assets, management, earnings, liquidity, and sensitivity.

The IC said it may verify the ratings of the bank upon the submission of the certification on their CAMELS rating, and an authorization letter allowing the IC to validate the said certification with the BSP.

Pre-need companies which already have existing investments in savings or time deposits and UITFs prior to the issuance of the circular are required to submit the names of the trustee company and the bank where the fund was invested and the amount involved within 15 days from the effectivity of the circular.

“In case the CAMELS rating of the bank where the trust fund was invested is below 3, the Commission may require the pre-need company concerned to transfer such trust fund to other banks having a BSP satisfactory examination rating within 30 days from receipt of such notice,” the IC said.

“The pre-need company being directed to comply with the requirements of this section may request an additional period of 30 days with the Insurance Commission which may be granted based on meritorious grounds,” it said.

The IC’s investment division shall be in-charge of the approval of the trust fund, while the pre-need division shall continue to verify the trust fund of pre-need companies.

The supervision and regulation of pre-need companies was transferred to the Insurance Commission from the Securities and Exchange Commission in 2009 upon the enactment of the pre-need code of the Philippines.