Module 1: QIB

Question 1

Section 10. Exempt Transactions.

The requirement of registration under Subsection 8.1 shall not apply to the sale of any security in any of the following transactions:

Answer 1

(a) at any juridical sale, or sale by an executor, administrator, guardian or receiver or trustee in insolvency or bankcruptcy
(b) by or for the account of a pledge holder, or a mortgagee or any other similar lien holder selling or offering for sale or delivery in the delivery in the ordinary course of business and not for the purpose of avoiding the provisions of this code., to liquidate a bonafide debt, a security pledged in good faith as security for such debt.
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(l)

Question 2

(l)The sale of securities to any number of the following qualified buyers:

Answer 2

i. Bank;
ii. Registered investment House;
iii. Insurance company
iv. Pension fund or retirement plan maintained by the Government of the Philippines or any political subdivision thereof or managed by a bank or other persons authorized by the Bangko Sentral ng Pilipinas to engage in trust functions;
v. Investment company; or
vi. Such other persons as the Commission may by rule determine as qualified buyers, on the basis of such factors as financial sophistication, net worth, knowledge, and experience in financial and business matters, or amount of assets under management.

Question 3

__________________ shall be considered a qualified individual buyer if he has registered as such with entities that are authorized by the Commission to act as registrar of qualified buyers

Answer 3

Natural person

Question 4

QIB Classification (Individual)

Answer 4

Any of the ff:
• Annual gross income: at least Ten Million Pesos (Php 10,000,000.00) at least two (2) years prior to registration, or
• Total Portfolio Investment (in securities registered with the SEC) of at least Ten Million Pesos (Php 10,000,000.00), or
• Personal net worth: not less than Thirty Million
Pesos (Php 30,000,000.00)

and

Any of the ff:
• Engaged in securities trading personally or through a fund manager for a minimum period of one (1) year, or
• Has held for at least two (2) years a position of responsibility in any professional business entity with knowledge/expertise in securities trading, (i.e., legal consultant, financial adviser, sales person, or associated person of a broker-dealer, bank finance or treasury officer, trust officer or other similar executive officers.)

Question 5

Qualifications (Juridical person)

Answer 5

• Gross assets: at least One Hundred Million Pesos (Php 100,000,000.00), or
• Total Portfolio Investment (in securities registered with the SEC or financial instruments issued by government)of at least Sixty Million Pesos (Php 60,000,000.00)

Question 6

QIB Requirements:

Answer 6

Submit under oath certified copies of the documents or their equivalent that show the following matters:

• Total Portfolio of securities;
• Annual Gross Income;
• Their Net Worth; and
• Threshold Risk (low, medium, high risk)

Question 7

The registration as qualified buyer shall be valid for __________ if the qualifications provided are continuously complied with.

Answer 7

3 years

Question 8

T or F. Any application for renewal shall be subject to new evaluation by the registrar and accompanied by updated information sheets.

Answer 8

T

Question 9

T or F. The registrar shall maintain a registry book of qualified buyers that which cannot be used for inspection by the Commission.

Answer 9

F. The registrar shall maintain a registry book of qualified buyers that SHALL BE OPEN for inspection by the Commission.