The Bangko Sentral ng Pilipinas (BSP) has updated its rules to give more overseas Filipinos more investment options.

In a statement Tuesday, the BSP said Personal Equity and Retirement Account (PERA) Unit Investment Trust Funds (UITFs) are now exempt from the non-resident ownership rule that previously limited their ability to invest in BSP securities.

“The move reflects the BSP’s continued effort to promote financial health. It helps Filipinos, both at home or abroad, build secure and sustainable retirement savings. It also helps develop the country’s private pension system and strengthens domestic capital markets,” the BSP said.

Non-residents are not allowed from owning BSP securities, which are debt instruments issued by the central bank.

UITFs were previously allowed to invest in these securities provided non-residents did not own more than 10 percent of the fund.

The amendments in the regulations exempt UITFs accredited by the BSP as PERA-UITFs from that limit.

The BSP said that at present, nine out of 13 PERA-UITFs exceed the 10 percent non-resident ownership limit, preventing them from investing in BSP securities.

“The change would allow them to diversify their portfolio,” said the central bank.

UITFs, which are managed by banks and trust companies and regulated by the BSP, pool funds from individual investors to create diversified portfolio, even for those investing in small amounts.

They are similar to mutual funds, which are managed by investment companies and regulated by the Securities and Exchange Commission. (PNA)