MANILA, Philippines – JP Morgan Chase & Co., one of the oldest and largest financial institutions in the world, is ending its trust and fiduciary business in the Philippines.
BSP deputy governor Nestor Espenilla Jr. issued circular 2016-042 informing banks and non-bank financial institutions that JP Morgan Chase Bank N.A. Manila branch had surrendered its authority to conduct trust and fiduciary business.
Espenilla said the Monetary Board approved last May 19 the revocation of the authority of JPMorgan Chase Bank Manila branch to engage in trust and fiduciary business. Its office is located in Taguig City.
Founded in 1961, JP Morgan Chase provides banking services in the Philippines.
Its lines of business include the investment bank including advisory, mergers and acquisitions, commodities, equities, fixed income and research while its treasury services includes treasury management, trade finance, liquidity and commercial card solutions.
The investment bank is a global leader in custody, securities lending, fund accounting and administration.
JP Morgan Chase provides support, including research, information technology as well as training for consumer and community banking, corporate and investment bank, and mortgage banking.
Trust business refers to any activity resulting from a trustor-trustee relationship (trusteeship) involving the appointment of a trustee by a trustor for the administration, holding, management of funds and/or properties of the trustor by the trustee for the use, benefit or advantage of the trustor or of others called beneficiaries.
Other fiduciary business, meanwhile, refers to any activity of a trust-licensed bank resulting from a contract or agreement whereby the bank binds itself to render services or to act in a representative capacity such as in an agency, guardianship, administratorship of wills, properties and estates, executorship, receivership, and other similar services which do not create or result in a trusteeship.
With prior approval of the BSP’S Monetary Board, banks may engage in trust and other fiduciary business under Chapter VII of RA 337 otherwise known as the General Banking Act.