PART THREE. FINANCIAL ACCOUNT TRANSACTIONS

Chapter II

LOANS AND GUARANTEES

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INWARD INVESTMENTS

Section 36. Registration with BSP

The following inward investments shall be registered with the BSP:

Investment/Instrument​​		Section
a.	(a) Assigned Capital and Operational Working Fund – for onshore branches/regional headquarters/regional operating headquarters and offic​es/representative offices; and (b) Contributed Capital – for onshore partnerships/joint ventures;​ Ownership or purchase of condominium unit; and Capitalized expenses incurred by foreign firms pursuant to government-approved service contracts/similar contracts for oil, gas, and geothermal energy exploration/development	Section 33.1.a-c
b.	Equity securities issued onshore by residents that are not listed at an onshore ex​change	Section 33.3.a.(i)
c.	Debt securities issued onshore by private sector residents that are not listed at an onshore exchange and not covered by the provisions of Part Three, Chapter I of the FX Manual (Loans and Guarantees)	Section 33.3.b.(i)
d.	Investment funds created onshore by residents (e.g., MFs and UITFs) whether listed or not listed at an onshore exchange	Section 33.3.d
e.	PDRs that are not listed at an onshore exchange	Section 33.3.e.(i)
f.	Debt securities issued onshore by non-residents that are not listed at an onshore exchange	Section 34.2.a
g.	Instruments issued by residents and non-residents which are not covered by Sections 33, 34 and the provisions of Part Three, Chapter I of the FX Manual (Loans and Guarantees), and not contrary to applicable laws, rules and regulations	Section 35
h.	Instruments under Section 36.1(a-g) used as collateral involving transfer of legal/beneficial ownership of the collateral to the non-resident investor27	-

The value of assets actually transferred to the Philippines as investments in kind referred to in Section 32.3.b shall be assessed and appraised by the BSP for registration purposes.



FX inwardly remitted to fund investments under Section 36.1 need not be converted to pesos, except for the following: 


foreign direct investments in foreign bank branches’ permanently assigned capital with such conversion to be made at the exchange rate prevailing at the time of r​emittance, pursuant to applicable laws and the Manual of Regulations for Banks (MORB); and



if investment is required to be funded by pesos.



For new/additional²⁸ investment/s of a non-resident investor, all applications²⁹ for registration of inward investments (Annex W) under Section 36.1 shall be filed with the BSP within the one (1) year prescriptive period.




The guidelines on registration/reporting of investments and supporting documents (Appendices 10.A and 10.C) shall be duly observed/complied with.

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Section 37. Registration with AABs

A registering AAB is a bank with authority to operate a foreign currency deposit unit (FCDU) that has been designated by the non-resident investor to register his investments. The registering AAB shall regularly report all transactions on the registered investments under the Report on Investments Registered with AABs.



Registration of investments in the following instruments shall be done with the designated registering AAB:

Investment/Instrument		Section
a.	Debt securities issued onshore by the National Government and other public sector entities	Section 33.2
b.	Equity securities issued onshore by residents that are listed at an onshore exchange (e.g., PSE)	Section 33.3.a.(ii)
c.	Debt securities issued onshore by private sector residents that are not listed at an onshore exchange and not covered by the provisions of Part Three, Chapter I of the FX Manual (Loans and Guarantees)	Section 33.3.b.(ii)
d.	ETFs issued/created onshore by residents	Section 33.3.c
e.	PDRs that are not listed at an onshore exchange	Section 33.3.e.(ii)
f.	Peso time deposits with an AAB with a maturity of at least 90 days	Section 33.4
g.	Equity securities issued onshore or offshore by non-residents that are listed at an onshore exchange	Section 34.1
h.	Debt securities issued onshore by  non-residents that are listed at an onshore exchange	Section 34.2.b
i	Instruments under Section 37.2(a-h) used as collateral involving transfer of legal/beneficial ownership of the collateral to the non-resident investor30	-

 

FX inwardly remitted to fund investments under Section 37.2 must be converted to pesos with AABs/AAB forex corps except if investment is required to be funded by FX.  



The non-resident investor or his duly authorized representative shall submit to each designated registering AAB a duly accomplished “Authority to Disclose Information”³¹ in the prescribed format (Appendix 10.4) covering all his investments registered with each designated registering AAB.



The guidelines on registration/reporting of investments and supporting documents (Appendices 10.B and 10.C) shall be duly observed/complied with.

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²⁷ Investments in instruments under Section 36.1 (a-g) arising from return/refund of collateral shall be registered with the BSP.

²⁸ Those arising from purchase of additional shares, stock splits, corporate restructuring and other similar cases.

²⁹ For existing investments that are unregistered as of the effectivity date of Circular No. 1030 (8 March 2019), applications for registration may be filed with the BSP within one (1) year from said effectivity date, regardless of the date of funding, without registration fee.

³⁰ Investments in instruments under Section 37.2 (a-h) arising from return/refund of collateral shall be registered with AABs.

³¹ The “Authority to Disclose Information” submitted to a registering AAB shall cover all investments existing as of date of the authority, as well as any subsequent investments of said non-resident investor.