Regulatory Alerts2020-04-28
SEC Memorandum Circular No. 15 s.2020 — Rules on Investment in Financial Derivatives
The Securities and Exchange Commission promulgates comprehensive rules governing investment companies, fund managers, and related entities regarding the use of financial derivatives. The circular establishes strict eligibility criteria for derivatives, imposes aggregate and single-counterparty exposure limits, and mandates robust risk-management processes to protect shareholders. These regulations align Philippine capital market practices with global standards to facilitate international cross-border transactions while ensuring adequate regulatory compliance.
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