Duration 2 days – 14 hrs
Overview
This course provides a comprehensive understanding of trust account administration, fiduciary responsibilities, investment management, and governance requirements within the Philippine financial system. It aligns with Bangko Sentral ng Pilipinas (BSP) regulations covering trust entities, including the Trust Business regulations under BSP Manual of Regulations for Banks (MORB) and related issuances. Participants will learn about trust account setup, documentation, suitability, investment guidelines, operations controls, and governance frameworks ensuring compliance, transparency, and proper stewardship of client assets.
Objectives
- Understand the fundamentals of trust, fiduciary, and investment management services in the Philippines.
- Explain BSP regulatory requirements governing trust entities and fiduciary accounts.
- Administer trust and investment accounts according to proper operational and compliance standards.
- Apply stringent documentation, valuation, reporting, and audit controls.
- Understand the governance structure including the Trust Committee, Risk Oversight, and Compliance roles.
- Evaluate client suitability, objectives, and risk profiles for trust accounts.
- Ensure proper handling of investments, account reviews, and portfolio monitoring.
- Maintain industry best practices to protect the interests of beneficiaries and trustors.
Audience
- Trust Account Officers & Administrators
- Trust Operations Staff
- Relationship Managers & Wealth Advisors
- Compliance Officers
- Risk Management Teams
- Portfolio Managers
- Investment Officers
- Audit Teams handling Trust products
- Anyone working in trust banking or fiduciary services
Pre- requisites
- Basic understanding of banking or investment concepts is helpful but not required.
- No prior trust operations experience necessary.
Course Content
Module 1: Introduction to Trust, Fiduciary Services & Philippine Trust Industry
- Definition of Trust & Fiduciary Relationship
- Overview of Trust Products in PH
- UITFs (Unit Investment Trust Funds)
- PERA (Personal Equity & Retirement Account)
- Investment Management Accounts (IMA)
- Escrow & Settlement Trusts
- Agency Accounts
- Key roles: Trustor, Trustee, Beneficiaries
- Trust Business Landscape in the Philippines (BPI, BDO, Metrobank, RCBC, Landbank, CTBC, etc.)
Module 2: Regulatory Environment (Philippine Setting)
- BSP Regulations for Trust Entities
- MORB Part VII – Trust, Other Fiduciary Business and Investment Management Activities
- BSP Circulars on Trust Business
- Duties and responsibilities of a Trust Entity
- Capital requirements, licensing, and governance standards
- Know-Your-Customer (KYC), AMLA, Data Privacy requirements
- PH regulations on suitability, disclosures, and investment guidelines
Module 3: Trust Account Opening, Documentation & Onboarding
- KYC requirements and client profiling
- Suitability assessment under PH rules
- Client Risk Profiling per BSP requirements
- Documentation requirements:
- Trust Agreements
- Letter of Instruction (LOI)
- Investment Policy Statement (IPS)
- Signature Cards & KYC Files
- Record-keeping required by BSP & trust auditors
Module 4: Investment Governance & Fiduciary Duties
- Fiduciary principles: prudence, loyalty, impartiality
- Compliance with investment objectives & IPS
- Prohibited investments under PH guidelines
- Pricing, valuation, and NAVPU computation standards
- Conflict of interest rules in the PH trust industry
- Internal controls for fiduciary risk
Module 5: Trust Operations & Administration
- Daily operations workflow
- Contribution and redemption processes
- Trade execution & settlement
- Cash management within trust accounts
- Handling corporate actions and entitlements
- Custodianship vs. Trusteeship
- Fees, billing arrangements & disclosure requirements
Module 6: Account Review & Monitoring
- BSP requirements on periodic reviews
- Account performance monitoring
- Compliance checks and portfolio deviation reports
- Breach handling and resolution
- Risk oversight and trust compliance monitoring
Module 7: Trust Committee & Governance Structure
- Roles of the Trust Committee
- Role of Investment Committee, Risk Oversight, and Compliance
- Responsibilities of Trust Officers
- Internal audit requirements
- Reporting to Senior Management and the Board
- Governance mechanisms to protect client assets
Module 8: Accounting, Valuation & Reporting Standards
- Mark-to-Market valuation standards
- NAVPU reports for UITFs
- Financial reporting for IMA and fiduciary accounts
- Client reporting obligations (statements, notices, confirmations)
- Independent pricing sources and valuation controls
Module 9: Risk Management for Trust & Fiduciary Accounts
- Market, liquidity, credit, and operational risks
- AML & Fraud risk in trust operations
- Segregation of assets vs. bank assets
- Stress testing (high-level)
- PH regulatory risk management requirements
Module 10: Case Studies & Practical Exercises
- Evaluating a trust client profile under PH standards
- Reviewing a sample Investment Policy Statement
- Trust operations simulation
- Analyzing a trust account portfolio for compliance
- Governance breach scenario workshop
Module 11: Best Practices & Action Plan
- Strengthening fiduciary culture
- Enhancing client experience while maintaining compliance
- Improving reporting and operational controls
- Personal action plan for trust professionals
