RCBC complies with global investment standards

The Rizal Commercial Banking Corporation (RCBC) has got their client’s back covered.

RCBC has fully complied with the prestigious Chartered Financial Analyst Institute’s (CFA Institute) Global Investment Performance Standards (GIPS) this month.

Full compliance with the international investment standards means strict adherence with global best practices, leading to full disclosure regarding the client’s investments.

“Compliance to these standards underscores our commitment to clients to disclose our performance returns in a clear and concise manner. GIPS focuses on transparent disclosure of the returns of our portfolios in the manner that is accepted globally,” RCBC Trust and Investment Group (TIG) head Robert B. Ramos said.

The GIPS is a set of ethical standards ensuring transparency and fairness in terms of calculating and presenting investment performance. Companies can voluntarily comply with the GIPS, beyond what regulators require.

The 2020 edition of the GIPS encourages compliance under three categories namely: the GIPS for firms, the GIPS for asset owners, and the GIPS for verifiers.

The objective of the GIPS is to promote investor interests and instill confidence, ensure accurate and consistent data, obtain worldwide acceptance of a single standard for calculating and presenting performance, promote fair, global competition among investment firms, and promote industry self-regulation on a global basis.

Last year, RCBC complied with the CFA Institute’s Asset Manager Code of Professional Conduct, signifying the universal bank’s commitment in growing and protecting the wealth and investments of their stakeholders.

The CFA code of conduct emphasizes six key areas of responsibility for asset managers including: loyalty to clients; investment process and actions; trading; risk management, compliance, and support; performance reporting and valuation; and disclosures.

“Compliance to these guidelines is a commitment to our clients that articulate our accountability in managing their funds and adhering to global standards,” Ramos added.

The CFA Institute is a global, non-profit organization providing investment professionals with financial education and training. It also promotes the standards of ethics as well as professional excellence in the global investment industry.

The RCBC TIG oversees investments for unit investment trust funds (UITFs), investment management accounts (IMA), and trust accounts, among others.

UITFs are pooled funds from individuals and institutions that are invested in different financial instruments with an initial investment for as low as P5,000. Trust Accounts and IMAs can hold various kinds of assets which may include real property, cash, stocks and bonds, among others. Trust Accounts, like personal management trust accounts, can also serve as tools for estate planning.