Banco de Oro Unibank and Bank of the Philippine Islands have expressed interest in becoming sponsors of the country’s first exchange-traded funds
The policy framework for the funds is being finalized by the Securities and Exchange Commission.
The products that should complement equity-laced funds, said SEC Commissioner Juanita Cueto.
She said the final framework for ETFs—a mutual fund-like asset class that the Philippine Stock Exchange has wanted to add to its array of product offering for over a decade—has been set for en banc discussion.
Cueto said the private sector had found ways to make the ETFs work notwithstanding tax concerns.
SEC chairperson Teresita Herbosa said the corporate watchdog would finish the framework in line with the target of the Philippine Stock Exchange to launch this new product before yearend.
The proposed rules and regulations on ETF classify this as a new investment product, which is similar to mutual fund but has distinct characteristics. The framework is pursuant to the Investment Company Act, which prescribes the regulation of investment companies such as the requirements to register with the SEC and comply with certain standards.
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