BSP exempts PERA UITFs from non-resident ownership rule

The Bangko Sentral ng Pilipinas (BSP) has exempted Personal Equity Retirement Account (PERA) Unit Investment Trust Funds (UITFs) from the non-resident ownership rule, enabling overseas Filipinos to invest in central bank securities.

PERA-UITFs are now exempt from the 10% limit on non-resident ownership in trust funds that invest in BSP securities.

This decision by the BSP aims to promote financial health and encourage Filipinos, whether residing locally or abroad, to build secure and sustainable retirement savings.

The exemption is also expected to foster the development of the Philippines' private pension system and bolster domestic capital markets.

Following this rule change, nine PERA-UITFs currently exceeding the non-resident ownership limit will be permitted to invest in BSP securities and diversify their portfolios.

The PERA program, established in December 2016, complements mandatory contributions to pension funds like the SSS and GSIS by encouraging retirement savings among Filipinos.