SEC lists potential PERA investment products, seeks public response on rules


Posted at May 24 2022 02:04 PM

MANILA - The Securities and Exchange Commission on Tuesday said it would soon issue equities, bonds, funds and other securities in which Personal Equity and Retirement Account (PERA) funds may be invested.

The Bangko Sentral ng Pilipinas in 2020 launched the digital PERA platform to encourage Filipinos to save for retirement. 

The proposed implementing rules and regulations on qualified and/or eligible personal equity and retirement account investment products, pursuant to Republic Act Np. 9505 or the PERA Act of 2008 have been released for public comment, the SEC said. 
Under the proposed rules, securities registered pursuant to the requirements of R.A. No. 8799 or the Securities Regulation Code and R.A. No. 2629 or the Investment Company Act, "are deemed to be eligible PERA investment products," it added. 

The investment products include:

  •  newly formed mutual funds including sub-fund of an umbrella fund and exchange traded funds whose fund managers have a track record of at least 5 years and whose names contain the words “Personal Equity and Retirement Account” or “PERA”
  •  real estate investment trust shares
  •  corporate bonds with an investible rating issued by an accredited credit rating agency
  •  equity securities that form part of the Phili
  •  government securities, securities issued by the Bangko Sentral ng Pilipinas
  •  corporate bonds issued by banks in compliance with BSP requirements will also be considered eligible PERA investment products
  •  other non-speculative, readily marketable and has a track record of regular income payment to investors may also qualify

The SEC said it could declare investment products ineligibly. 

The public may access the draft memorandum circular on the SEC website, it said. Comments are welcome until June 1, it said.

According to the BSP, only 20 percent of the 7.6 million senior citizens aged 60 and above have Social Security System and Government Service Insurance System as of 2020.