E. Invesment Companies Flashcards
means any
issuer which is or holds itself out as
being engaged primarily, or proposes
to engage primarily, in the business of
investing, reinvesting, or trading in
securities
INVESTMENT
COMPANY
The investment Company act also known as
Republic Act No.2629
The securities Regulation Code also know as
Republic Act No. 8799
- Investment Company Act (ICA)
- Securities Regulation Code (SRC)
- Rules and Regulations (IRR)
- registration
statement that has been declared effective by SEC
TYPES OF SECURITIES MAY BE ISSUED BY AN
INVESTMENT COMPANY
What is the type of securities may be issued by an investment company:
- the Investment Company Act (ICA)
- Securities Regulation Code (SRC)
- Implementing Rules and Regulations (IRR)
Form Type:
REQUIREMENTS FOR REGISTRATION OF INVESTMENT COMPANIES
1) SEC FORM ICA 7-A*
2) SEC FORM 12-1-ICA
Supporting Documents:
Prospectus,
Product Highlight Sheet,
Financial Statements
and Exhibits
No. of Copies:
One (1) manually signed copy, three (3) conformed copies
Paper Size:
A4 Size Paper or /8 ½ x 11 inches
License Fee to operate as an Investment Company :
FILING FEE
Basic fee = 10,000.00
Legal Research fee = 100.00
The registreation of units of participation of an investment company:
Basic fee = 10,000.00
Legal Research Fee = 100.00
Documentary Stamp Tax = 30.00
HOW LONG IS THE PROCESSING
OF APPLICATION?
Within forty-five (45) days after the date of filing of the registration
statement,
means an investment company which is
offering for sale or has outstanding any redeemable security of
which it is the issuer
Open-end company
company means any investment company other
than an open-end company. (Sec. 5, Republic Act No. 2629 or
Investment Company Act)
Close-end Company
shall refer to an Investment Company with the objective to
invest predominantly in or hold equity instruments.
AN INVESTMENT COMPANY MAY BE
Equity Fund
Shall refer to an Investment Company which invests in fixed income instruments such as bonds, treasury bills,
certificates of deposit, promissory notes, bills of exchange, debentures, etc. It
should not invest in shares, except redeemable preferred shares, or share
warrants
Bond Fund or Fixed Income Fund
shall refer to an Investment Company that invests in both
equity and fixed income instruments.
Balanced Fund
The respective investments in either
equity or fixed income shall not be less than (balanced Fund)
thirty five percent (35%) but not
more than sixty five percent (65%) of the NAV of the Investment Company
Shall refer to an MFC that invests at least ninety percent
(90%) of its net assets in a single CIS established by another Fund Manager,
asset management company or fund operator.
Feeder Fund
shall refer to an MFC(Management Financial Company) that invests at least fifty percent
(50%) of its net assets in more than one (1) CIS established by another Fund
Manager/s, asset management company/ies or fund operator/s.
Fund-of-Funds
shall refer to an Investment Company with an objective of
providing investors with a return that replicates or is linked to securities
indices as disclosed in its prospectus.
Index Fund
shall refer to an Investment Company that
invests in short-term fixed income securities with a portfolio duration of
one (1) year or less
Money market funds
shall refer to an MFC that
invests in a fixed or variable mix of both equity and fixed income
instruments, as well as cash and cash-equivalents
Multi-asset/Asset Allocation Fund
The main business of an investment company is to
** hold
and manage securities** but
they typically offer investors a variety of funds and
investment services
offer investors a variety of funds and
investment services:
portfolio
management,
recordkeeping,
custodial, legal,
accounting,
and tax management services
There are — registered and active Investment Companies in the
Philippines as of —–
78 registered and june 30 2024.
