Republic of the Philippines
Quezon City, Metro Manila


TWELFTH CONGRESS

First Regular Session

Bill No.


Introduced by Honorable Joey Sarte Salceda


AN ACT PROVIDING FOR THE REGULATION OF INVESTMENT COMPANIES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

CHAPTER I - Title and Definitions

Sec. 1. Short Title.
Sec. 2. Declaration of Policy.
Sec. 3. Definitions and Interpretation.
Sec. 4. Definition of Investment Company. 
Sec. 5. Classification of Investment Companies.

CHAPTER II - Registration of Investment Companies

Sec. 6. Registration Requirement for Investment Companies.
Sec. 7. Registration Procedure for Investment Companies.

CHAPTER III - Operation of Investment Companies

Sec. 8. Distribution and Redemption of Mutual Fund Securities.
Sec. 9. Distribution and Repurchase of Closed-End Fund Securities.
Sec. 10. Advertising.
Sec. 11. Limit on Fees and Expenses.
Sec. 12. Structure and Capitalization of Investment Companies.
Sec. 13. Board of Directors.
Sec. 14. Reporting Requirements for Investment Companies.
Sec. 15. Purchases on Margin, Short Selling and Limits on Indebtedness.
Sec. 16. Investment Restrictions.
Sec. 17. Misleading Names.
Sec. 18. Prohibition on Loans and Guarantees.
Sec. 19. Other Prohibited Activities of Investment Companies.
Sec. 20. Changes in Investment Policy.
Sec. 21. Reorganizations.
Sec. 22. Dividends.
Sec. 23. Offers to Exchange Securities.
Sec. 24. Proxies and Voting Trusts.

CHAPTER IV - Regulation of Securities Market Professionals and Affiliated Persons

Sec. 25. Registration Requirement for Investment Advisers, Principal Distributors and Mutual Fund Dealers.

Sec. 26. Investment Advisory and Distribution Contracts.
Sec. 27. Investment Company Association.
Sec. 28. Investor Protection Fund.
Sec. 29. Ineligibility of Certain Affiliated Persons and Underwriters.
Sec. 30. Requirements for Affiliated Persons.
Sec. 31. Prohibited Transactions of Affiliated Persons.
Sec. 32. Registration Requirement for Investment Solicitors.
Sec. 33. Register and Changes in Information.

CHAPTER V - Custodianship and Recordkeeping

Sec. 34. Custodians and Sub-Custodians.
Sec. 35. Auditors.
Sec. 36. Recordkeeping.

CHAPTER VI - Enforcement and Liability

Sec. 37. Liabilities of Controlling Persons and Aider and Abettor and Other Secondary Liability.

Sec. 38. Investigations, Injunctions and Prosecution of Offenses.
Sec. 39. Administrative Sanctions.
Sec. 40. Penalties.
Sec. 41. Validity of Contracts.
Sec. 42. Civil Liability.
Sec. 43. Limitation of Actions.
Sec. 44. Substituted Service Upon the Commission.
Sec. 45. Effect of Action of Commission and Related Unlawful Representations.
Sec. 46. Effect on Existing Law.

CHAPTER VII - General Provisions

Sec. 47. Revelation of Filed Information.
Sec. 48. Rules, Regulations and Orders.
Sec. 49. Fees.
Sec. 50. Repealing Clause.
Sec. 51. Separability.
Sec. 52. Effective Date and Transition.

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