Circular No. 1234: Amendment of the Exposure Limits of Unit Investment Trust Funds

BANGKO SENTRAL NG PILIPINAS Subject: Amendment of the Exposure Limits of Unit Investment Trust Funds The Monetary Board. in its Resolution No. 388 dated 06 May 2026, approved the recal'bration of the maximum exposure limits of Unit Investment Trust Funds (UITFs) relative to eXchange-traded equity securities. resulti g in amendments o Section 4/4 of the Manual of Regulations for Banks (MORB) and Section 4/4-Q of t e Manual of Regulations for Nori-Bank Financial Institutions (MORNBFl). Section, , Section 4/4/414- Q of the MORB/MORNBFl is hereby amended to read as follows: CIRCULAR No. OFFICE OF THE GOVERNOR Series of 2026 4/4/'14-Q U ITINVESTMENTTRUST FUND 1234 Exposure limits, The combined exposu e of the UITF to any entity shall not exceed fi een percent 115%) of the market value of the UITF: Provided That. a UITF invested. partially or substantially, in eXchange-traded equity securities shall be subject to a twenty percent (20%) exposure limit to a single entity/issuer; Provided further That any exposure exceeding fifteen percent (15%). up to the applicable twenty percent (20%) limit, shall be solely in the form of investments in eXchange-traded equity securities of the same entity/issuer: Provided finally That. in the case of an equity index-tracking UITF, the exposurelimit shall be the actual benchmark weighting of the index componentissuer, which may exceed twenty percent (20%). XXX This limitation xxx. The TE shall be cognizant of the aggregate investments of a UITF in any entity and its related parties, and shall have adequate tools and controls in place to effectiveIy manage the ove all risk exposure. In the case of feeder und/fund"of. funds, xxx. Should the limits prescribed above be breached for any reaso . the TE must notify the appropriate supervising department' of the Bangko Sentral of such non. compliance on the banking/business day immediately following the occurrence of the breach. The notice shall be signed by the trust officer. or an officer of equivalent rank. and shall contain the following minimum information: (a) (b) (c) The date the breach occurred; The r ason/s for or factor/s leading to the breach; and The a tion/s the TE has taken and/or will take to achieve ful compliance with the exposure limit, ' For this purpose. the su ervising department is the Capital Markets and Trust Supervision Department. Page I of 2

Breaches arising solely from mark-to-market movements of investments or other extraordinary circumstances (e. g. , abnormal redemptions beyond the control of the TE) shall be corrected within thirty (30) days from the time the limit is breached. or in case of investor funds. thirty (30) days from date of receipt of report indicating the net asset value of the fund All other breaches shal be acted upon immediately. Once full compliance is achieved, the TE shall submit a notice to the Bangko Sentral stating that the breach has been corrected. Allowable investments and valuation. xxx. Section 2. E ectivity. This Circular shall take effect fifteen (15) calendar days following its publica ion either in the Official Gazette or in a newspaper of general circulation. XXX ^Q May 2026 FOR THE MONETARY BOARD: I^ ELI M, REMOLONA, JR. Governor ~.^- Page 2 of 2