BSP Eases Security Requirement for PERA Administrators’ Faithful Performance of Duties

On 7 February 2023, the Bangko Sentral ng Pilipinas (“BSP”) released BSP Circular No. 1168, series of 2023 (“Circular”) which no longer subjects Personal Equity and Retirement Account (“PERA”) Administrators to a security requirement for the faithful performance of its duties.

Previously, as a security for the faithful performance of its duties under the PERA Act, PERA Administrators were required to hold eligible government securities, equivalent to at least half a percent (0.5%) of the book value of the total volume of PERA assets administered, earmarked in favor of the BSP. With the Circular in place, the rate for this security requirement became 0% of the book value of the total volume of PERA assets administered. In effect, the security for the faithful performance of PERA administrators’ duties is no longer required. 

In this regard, the submission of Quarterly Report on Compliance with the Basic Security Deposit Requirement shall no longer be required starting the reference period of 31 March 2023. 
The full text of BSP Circular No. 1168 can be found here.