BDO Unibank Inc., the country’s largest lender in terms of assets, became the first financial institution in the Philippines accredited as personal equity and retirement account, or Pera, administrator.
BDO said in a statement the accreditation came after hurdling stringent qualification requirements of Bangko Sentral ng Pilipinas and Bureau of Internal Revenue.
“The trust and investments group of BDO Unibank became the first institution in the country to be accredited as PERA administrator,” it said.
Pera is a product of Republic Act 9505 which was signed into law on Aug. 22, 2008. Implementing rules and regulations were issued on Oct. 21, 2009 by various regulatory bodies. These were further detailed by regulatory issuances byBangko Sentral and BIR, the latest of which was on July 21, 2016.
Pera is the Philippine version of similar laws covering retirement savings vehicles prevalent and long standing in more developed countries such as IRA and 401K. It establishes the legal and regulatory framework for voluntary personal retirement plans as a means to promote savings mobilization, capital market development and long-term fiscal sustainability.
It affords employers an opportunity to become agents in furthering these objectives. It provides Filipinos a means to supplement their future pension benefits from Social Security System and Government Service Insurance System.
“BDO believes that being the first Pera administrator is a distinct privilege. This will allow BDO to further promote its advocacy for financial inclusion. It is also a great responsibility and thus, we have to see to it that it is properly implemented,” BDO executive vice president and trust officer Ador Abrogena said.
“We are working towards aligning our systems and processes with recent and forthcoming regulatory issuances,” Abrogena said.
He said implementing Pera was complex as it involved efficient coordination with the various participants such as the cash/securities custodians, investment product providers and investments managers and providing the required regulatory reports.