MANILA - The Bangko Sentral ng Pilipinas said Wednesday it approved guidelines that would expand the distribution channels for Unit Investment Trust Funds (UITFs) in a bid to promote financial inclusion.
In a statement, the BSP said the Monetary Board approved the rules that would allow trust corporations to distribute their UITFs via third parties such as individuals or institutional agents, broadening access points to innovative financial products and services.
“Through this policy, agents are expected to bring products closer to investors. At the same time, it is an opportunity for the industry to grow assets under management through partnerships with distributors. More products in the market will also bode well for capital market development," BSP Gov. Benjamin Diokno said.
Third party providers, both individuals and institutions, must abide by "stringent qualification standards" and meet the qualifications in existing regulations, the central bank said.
The BSP said this move was part of the reforms undertaken to boost growth in the trust industry.
The BSP defined UITFs as pooled trust funds operated and administered by a trust entity and made available by participation.