Rule 6. Certificate of Registration of Pre-Need Plans

6.1.    A Certificate of Registration of Pre- need Plans and a Permit  to Offer for Sale or Sell Pre-Need Plans issued by the Commission, shall be subject to the following terms and conditions:

a.)    The selling price of the Plans shall be at prices contained in the Registration Statement and any subsequent increase or decrease in price   shall not be effected without the prior approval of the Commission; 

b.)    No resale of Cancelled or Lapsed Plans is allowed; 

c.)    Only registered and licensed salesmen or general agent shall be allowed by the issuer to sell, offer for sale or collect payments for Pre-Need Plans; 

d.)    The issuer, before appointing a salesman or  general agent, or opening, closing, or transferring branches, shall secure the prior approval of the Commission; 

e.)    No Plans shall be sold without prior registration from the Commission; 

f.)    Trust Fund deposits shall be in accordance with the rates used in the actuarial studies submitted under Rule 4.1 , paragraph 7 ( i.) subparagraph C and shall be made within twenty (20) days from the end of each reference month for payments received from Plans sold either in cash or installment.  The report of such deposits shall also be submitted to the Commission within the same period; 

g.)    The Trust Fund, inclusive of earnings, shall be administered and managed by a trust company, bank or investment house authorized to perform trust functions in the Philippines.  Investment of the Trust Fund shall be in accordance with Rules 17 and 18 and other related rules; 

h.)    No withdrawal shall be made from the Trust Fund except for paying the Benefits such as monetary consideration, cost of the service rendered or properties delivered, bank charges and investment expenses in the operation of the trust fund, termination values payable to Planholders, annuities and taxes on trust funds, contributions of cancelled plans to the Trust Fund, reasonable withdrawals for minor repairs and costs of  ordinary maintenance of trust funds assets; 

i.)    The required minimum paid up capital shall be maintained unimpaired; 

j.)    The Audited Annual Financial Statements of the Pre-Need Company,      prepared in accordance with the Pre-Need Uniform Chart of Accounts set forth in Rule 31, exclusive of the Notes to Financial Statements, and the last quarter Trust Fund Statement shall be published within one hundred twenty (120 ) days after the end of the fiscal year, as required under Rule 23.1.2. A copy of such financial statement as published, together with the publisher’s certificate shall be submitted to the Commission within ten (10) days after said publication; 

k.)    All advertisements need not be approved by the Commission but shall contain the disclaimer provided in  Rule 14.3; 

l.)    All reportorial requirements required under the Code, these Rules and other relevant laws and/or rules shall be complied with; 

m.)    A sworn financial report on the Trust Fund shall be submitted to the Commission by the Trustee within ten (10) days from the end of the previous month and by the Pre-Need Company within thirty (30) days from the end of each quarter; 

n.)    Violation of any or all the conditions imposed in the Certificate of Registration or Permit To Sell shall subject the issuer and/or its responsible officials to the sanctions and penalties provided in applicable laws and/or rules. 

6.2.    The Commission reserves the right to add, alter, change, amend or otherwise modify any or all of the foregoing conditions or to impose any other condition and to recall the Certificate of Registration pursuant thereto, to effect therein the necessary changes, alterations or modifications if public interest or the protection of the investors warrants such action.

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