What categories of foreign investments are required to be registered directly with the BSP, and what may be registered with the investor’s designated custodian bank on behalf of the BSP?
Inward foreign investments in peso-denominated securities issued onshore by the National Government and other public sector entities; Philippine Stock Exchange (PSE)-listed equity securities issued by both residents and non-residents; and peso time deposits (with maturities of at least 90 days) shall be registered with the investor’s designated custodian bank on behalf of the BSP (see item 6 for definition of custodian banks). Inward remittances of FX funding portfolio investments need to be converted to pesos.
Second, there must be evidence of receipt of the funds/assets by the local investee/beneficiary/or the local seller/issuer of the investment instruments,such as a Sworn Certification on such receipt and issuance of shares in consideration thereof (for investment in stock corporations); stockbroker’s purchase invoice or subscription agreement (for PSE-listed shares); accredited dealer’s Confirmation of Sale (for government securities); Certificate of Time Deposit (for peso time deposits with tenor of 90 days or longer); and contract/certificate of investment (for peso-denominated debt instruments). (For the complete registration procedure and documentation requirement, you may refer to the Appendix 10 of the FX Manual.)
All applications for registration of FDIs that are to be filed directly with the BSP, through the IOD, shall be supported by a duly accomplished application form (Annex W of the FX Manual).
Is there a prescriptive period for the filing of applications for registration of FDIs with the BSP?
Under Section 43 of the FX Manual, foreign investments certified by stock transfer agents to have been made prior to 15 March 1973 may be serviced using FX purchased from AABs/AAB-forex corps without prior BSP approval. In the absence of a stock transfer agent that will certify thereto, may foreign investments made prior to 15 March 1973 still be serviced using FX purchased from AABs/AAB-forex corps?
Can a foreign investor outward remit the FX equivalent of their excess peso funds arising from unused portion of FX inwardly remitted and converted to pesos for the purpose of making investments in the Philippines?
The provision is applicable to FPIs [item nos. 1 – 3 of Section 35 of the FX Manual] that have been registered by custodian banks. For foreign investments registered by the BSP, prior approval must be obtained for the remittance of the excess peso funds.
The BOI also coordinates an inter-agency Investment Promotion Unit (IPU) network for investment after care. The BSP is a member of the IPU.
Can an investment by a non-resident in equity shares of another non-resident that are listed at the PSE be registered to allow servicing of these investments using banking system resources?
Can non-resident issuers of PSE-listed equity securities buy from AABs/AAB-forex corps the FX equivalent of peso proceeds from the onshore sale of such shares?
Is the new “Authority to Disclose Information” under Circular No. 838 dated 26 June 2014 required to be submitted by non-residents for every registration of investment with custodian banks?
b. PSE-listed securities of residents;
c. peso time deposits with tenor of at least 90 days;
d. non-resident investments in equities issued by non-residents previously listed in an international exchange and subsequently uplifted/transferred to PSE; and
e. non-resident investments in PSE-listed equity securities issued by