Press Release
July 3, 2009

COLLECTIVE INVESTMENT SCHEMES BILL SHOULD
BE ENACTED - ANGARA

Senator Edgardo J. Angara today emphasized the need to enact the Collective Investment Schemes Bill that will amend the Investment Company Act of 1960 in order to unify different laws and regulations on unit investments trust funds and investment companies.

"In the Philippines, investment companies (mutual funds) and unit investment trust funds (UITFs), the most common forms of CIS, are still governed by varying laws and regulations. As such, this bill seeks to balance the interests of investors through mechanisms that would safeguard the public interest, at the same time recognize the interests of the other parties involved in the CIS industry, by giving them flexibility to expand their CIS businesses," informed Angara who chairs the Senate Committee on Finance.

Angara recently filed the Collective Investment Schemes Bill or the SB 1181 which seeks to promote investor protection; assist in the development of the capital markets; encourage participation by the best qualified asset management companies; and investment advisers and broaden participation by Filipinos in securities ownership.

"The bill will not be limited to regulating open and close ended investment companies; it will also cover other collective investment schemes including companies, unit investment trust funds, and other similar indirect or collective investment schemes. With this bill, even middle to low income individuals will explore more investment opportunities in CIS, thereby gaining access to the capital markets," added Angara.

Angara, former Banks, Financial Institutions and Currencies Committee chair, lamented that countries such as United Kingdom, Japan, Australia, Korea and Singapore have already adopted this kind of approach that's why it is time to adopt this strategy to help in assisting the growth of industries in the country, currently lagging in regulating investment funds.

"Through this bill, we can promote investor protection by applying high governance standards in the establishment, sale, management and operation of collective investment schemes in order to prevent abuse and protect the interests of the investing public," he added.(

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