SyCipLaw's Banking, Finance & Securities Department's Banking Bulletin for May 2023 features the latest issuances from the Securities and Exchange Commission (SEC) and theBangko Sentral ng Pilipinas(BSP or Central Bank of the Philippines), which includes the adoption of the ASEAN Sustainable and Responsible (SRF) standards, and the clarifications made by BSP on what is considered excluded from the Real Estate Loan Limit and Stress Test.

SEC Adopts the ASEAN Sustainable and Responsible Fund Standards and Establishes Rules on Recognition of Foreign Collective Investment Schemes

On April 13, 2023, the Securities and Exchange Commission ("SEC") issued Memorandum Circular No. 4, Series of 2023 ("MC 4-23") to adopt the ASEAN Sustainable and Responsible Fund Standards ("ASEAN SRFS") and establish rules on the qualifications of local investment companies under the ASEAN SRFS and the recognition of foreign investment collective schemes qualified under the ASEAN SRFS that seek to offer in the Philippines under the ASEAN Collective Investment Scheme ("CIS") framework ("ASEAN CIS Framework").

MC 4-23 took effect on April 27, 2023, after its publication in two newspapers of general circulation in the Philippines.

MC 4-23 applies to (i) investment companies, including sub-funds of an umbrella fund, and fund managers that seek to qualify under the ASEAN SRFS and want to either offer locally or on a cross-border basis under the ASEAN CIS Framework, and (ii) CIS Operators and Foreign SRFs that seek to offer in the Philippines under the ASEAN CIS Framework.

BSP Clarifies Exclusions from Real Estate Loan Limit and Stress Test

On 28 April 2023, the Bangko Sentral ng Pilipinas ("BSP") issued Memorandum No. M-2022-039 and clarified the definition of infrastructure projects for public use as indicated in Section 363-A of the Manual of Regulations for Banks ("MORB") on Limits on Real Estate Exposures of Universal and Commercial Banks.

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