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f e a t u r e s @ p h i l s t a r. c o m . p h

Money Market Association of the Philippines (MART)

My warmest greetings and congratulations to the members and ofcers of the Money Market Association of the Philippines as you hold 13th Money Market Consciousness Week this 15th-21st of November 2010. Through the years, you have accordingly exhibited your commitment to playing a key role in boosting economic growth, raising the ante in this industry to global standards. I laud you for consistently giving quality service to the needs of your members, embracing the importance of effective policies and procedures, and echoing the Aquino administrations pursuit for transparency. May you remain as dynamic, responsive and steadfast as you were all through these years. Rest assured that I share your commitment in promoting Philippine economic growth. I see it as a continuing partnership of further stressing our efforts to improve every Filipinos lives. Again, Congratulations! Mabuhay kayong lahat! CESAR V. PURISIMA Secretary, Department of Finance On behalf of the Bangko Sentral ng Pilipinas, I wish to extend my warmest greetings to the Money Market Association of the Philippines (MART) on its 39th Year Anniversary and the celebration of the 13th Money Market Consciousness Week! The BSP is cognizant of MARTs efforts to support the countrys economic development by remaining true to its commitments of promoting a robust and well-functioning domestic debt market. This years theme MART 39: Staying Ahead in Innovation, Education and Professionalism to Fuel Investments and Growth highlights the importance of remaining proactive and dynamic in the face of an increasingly challenging nancial environment. We vote that in the past year, MART has made signicant steps in setting forth professional trading practices, promoting ethical standards, and ensuring investor protection and education. By doing this, MART has laid the foundation for greater transparency and therefore, greater condence, in our nancial markets. We likewise commend the dedicated ofcers and staff of MART for your commitment to professional excellence. We hope that your organization will continue to play an active role in pursuing initiatives that will improve the state of our markets at the same time maintaining market integrity. As you reach another milestone, the BSP look forward to strengthening its partnership with you in keeping our nancial markets healthy and vibrant in line with the pursuit of nancial stability. Congratulations and more power! AMANDO M. TETANGCO, JR. Governor, Bangko Sentral ng Pilipinas Best wishes from the Securities and Exchange Commission to the Money Market Association of the Philippines (MART) on the commemoration of its 39th anniversary. Now in its 39 years of existence, MART continues to be a vital element in building and maintaining a sound local debt market as it continues to espouse competency from among its members, some of whom have become captains in the nance industry. Its ability to work with the Commission on issues affecting the market despite differences at times, is also a testament to the professionalism that abounds within the organization. The promotion of competency and professionalism within its ranks has served the organization well in the various bull and bear runs that both the local and foreign markets have experienced through this period. There is no doubt that remaining faithful to these values will carry MART to new heights in the succeeding years. Again, we wish MART and its members all the best. FE B. BARIN Chairperson, Securities and Exchange Commission Greetings and congratulations to the Board of Directors and Members of the Money Market Association of the Philippines (MART) on the occasion of your 13th Money Market Consciousness Week and 39th Founding Anniversary. As you celebrate your anniversary, let me take cognizance of MARTs contribution to the development and deepening of the interest rate markets. MART has been an able and willing partner of the Bureau of Treasury (BTR) in achieving its broad mandate of efciently managing the nancial resources of the Republic. In its long and fruitful history, the MART leadership has been at the fore in partnering with the BTR, in fostering the development of market instruments as well as in introducing technological changes in trading and delivery channels to achieve greater efciencies. These efforts have led to signicant positive contributions to the robust and active interest rate market we have today. We are fortunate to have worked together in squarely facing the challenges of recent years which, in no small measure, minimized the impact of the global nancial and economic crisis on our economy. The tailwinds of this crisis have abated. This should provide the impetus for us to move forward, albeit at a measured pace, towards more reforms in the nancial markets. We at the BTR look forward to again partnering with the MART in pursuing our common goals for a sustained healthy nancial environment. We share in your success! Cheers and Mabuhay!

Messages

MART at 39:
Staying Ahead in Innovation, Education, and Professionalism to Fuel Investments and Growth
The Money Market Association of the Philippines (MART) celebrates its 39th founding anniversary amidst the challenges of the new economic order brought about by the global economic and nancial crisis.
During its long and colorful history, the Association of Banks, Investment Houses, and other nancial intermediaries has responded to the challenges posed by a constantly changing nancial and economic landscape. It has proven to be an able partner of regulators and other market participants in alleviating the effects of domestic and global market disruptions and turmoil. The money market crisis in the 80s due to the Dewey Dee asco, the standstill of the markets after the Philippine debt restructuring post Ninoy Aquino Assassination, and more recently the global nancial and economic crisis are but some of the events that the MART, through its leadership and members, has navigated through, working with together with the Bangko Sentral ng Pilipinas (BSP), the Securities and Exchange Commission (SEC), the Department of Finance (DOF), and the Bureau of Treasury (BTR), to ensure the continuity of the money markets for the benet of the investing public. Out of these challenges, emerged a stronger and more vibrant interest rate market that continues to grow not just in terms volume but in terms of products and delivery systems due in part to MART s advocacy for a stronger partnership and interaction among regulators, involved government agencies such as the BTR, and its member nancial intermediaries. It also continues to uphold its mission of being a key participant in the economic progress of the country by driving the development of the interest rate markets. The Money Market Association of the Philippines, Inc. is a non-stock, non-prot corporation organized to provide an institutional medium by and through which the membership can collectively assist and cooperate with one another, the National Government and its appropriate agencies and instrumentalities in the promotion, development, expansion and regulation of a free and open market for debt, debt-securities and debt-related instruments and products. On its 39th convention themed MART at 39: Staying Ahead in Innovation, Education, and Professionalism to Fuel Investment and Growth, MART is focusing on efforts to uplift nancial the countrys nancial industry. Joan Policarpio, MART President and a Director at Deutsche Bank AG Manila, expressed the Associations desire to continue being a partner in nation building through the nancial markets. We believe that the Association has achieved signicant strides in the past in developing the money mar-

13th Money Market Consciousness Week November 15 -21 2010

EXECUTIVE COMMITTEE

President JOAN G. POLICARPIO Director Deutsche Bank - Manila Branch

Vice President MARIQUITA L. AGENA Senior Vice President Metropolitan Bank & Trust Company

Secretary JOSELITO RICARDO G. NAZARIO SVP/Treasurer Philippine Veterans Bank

Treasurer HORACIO E. CEBRERO, III EVP/Treasury Group Head Philippine National Bank

2009 Past President PAUL RAYMOND A. FAVILA Director Citi, N.A.

BOARD OF DIRECTORS

ERVIN PAOLO S. BELEN Manager Multinational Investment Bancorporation

ROBERTO JUANCHITO T. DISPO MANUEL ANDRES D. GOSECO EVP/Treasurer SVP/Treasurer First Metro Investment Corporation East West Banking Corporation

CAREL D. HALOG Vice President Landbank of the Philippines

JOSE EMMANUEL U. HILADO DALMACIO D. MARTIN EVP/Treasurer Senior Vice President Rizal Commercial Banking Corporation Banco De Oro Unibank, Inc.

MARY LOURDES T. UY Vice President Allied Banking Corporation

ANTONIO V. PANER EVP/Treasurer Bank of the Philippine Islands

FELIPE MARTIN F. TIMBOL SVP/Treasurer Bank of Commerce

ROBERTO B. TAN Treasurer of the Philippines Bureau of Treasury It is with pride that I congratulate the Money Market Association of the Philippines (MART) as it celebrates its 39th Foundation Anniversary and 13th Money Market Consciousness Week. The MART is an organization of bank and non-bank nancial institution that I take special cognizance of and that is close to my heart because as one of the pioneers in Investment Banking in the Philippines, I was tasked by the Central Bank to craft the Articles of Incorporation and ByLaws of the Money Market Association of the Philippines, having been an investment banker in the early part of my career before joining government to an elective position and later appointed as Minister of Trade and Chairman of the Philippine Commission on Government Reorganization. Over the years, the MART has been proving professional and standardized trading practice guidelines and has assisted in the development of a vigorous domestic debt market that has, to a considerable extent, supported critical capital requirements for national nancial market growth and development. As the vice chairman of the Committee on Banks and Financial Intermediaries of the House of Representatives, I have supported legislative enactments that sought to promote, enhance and further develop the money markets in the country, particularly through the comprehensive revision of the Central Bank Charter. Let me again, reiterate my continuing support to the Money Market Association of the Philippines and it is my sincere hope that the MART will be the self-regulatory organization (SRO) of the Treasury Bills and Commercial Paper Markets in the country, as it rightfully deserves to be so, given its track record and accomplishments, for almost four decades. Congratulations on the milestones that you have accomplished in the development of the nancial markets in the Philippines and may I extend my best wishes to the MART and to its ofcers and members.

LUIS R . VILLAFUENTE Congressional, Third District, Camarines Sur

kets. But there is a lot of work that still needs to be done in terms of involving the general public about our market and how they can participate more meaningfully. In addition, to achieve parity with our neighbors in terms of product offerings we need to innovate while maintaining the highest level of professionalism in delivering services to our public and upholding best market practices Bringing Financial Knowledge to the Public More involvement of the general public in the money markets will deepen and strengthen the nancial industry. However it is imperative for this public to gain a sufcient degree of nancial literacy for them to benet from their participation. The MART has been at the forefront in this effort. As part of their ongoing series of nancial literacy campaign, MART will hold a nancial literacy seminar to the students of the University of Cebu as part of its annual convention to be held in the city. This year, it has conducted seminars on increasing understanding the interest rate markets including Advance Financial Statement Analysis and Advance Economics Seminar, Fixed Income and Interest Rate Swap

Seminar, Market Reading Seminar, and Basic Derivatives among others. MART also conducts open forums to a wide variety of investors, from simple housewives to professionals in various industries. Innovation, professionalism in keeping the industry stronger This year, MART, with the active cooperation of the BSP, achieved a milestone in its almost 40 year history, with the development of the Code of Ethics covering the nancial markets of the Philippines. Working among its members and other industry players, MART arrived at common values and best practices that serve as a code of reference for members. The code is envisioned to achieve the highest standards of professionalism and integrity, which will redound to the benet the investing public. Technical expertise and a sophisticated menu of products benet the markets but fair and transparent dealings with clients, professionalism and integrity, these values, basic as they are, sustain and ensure the growth of the market. MART and its members will continue to uphold these values. Ms. Policarpio emphasized.

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MONDAY, NOVEMBER 15, 2010

PROFESSIONAL MARKETS OVERSIGHT

(From left) Coco Martin, BDO, Mike Calleja, BPI, Paul Favila, Citi, N.A. (Chairman), Yumyum Delno, Deutsche Bank.

INTEREST RATE DERIVATIVES COMMITTEE

(From left) Joel Caniza, RCBC, Coco Martin, BDO, (Chairman), Faye Del Rosario, Citi,N.A., Paul Favila, Citi, N.A., Joan Policarpio, Deutsche Bank, Rino Gomez, Tradition, Donna May Pascual, BPI, Raul Pedro, SBC.

MONEY MARKET COMMITTE

(From left) Robs Sy, Citi, N.A., Malou Barrameda, BPI, Mike Calleja, BPI (Chairman), Rey Fernandez, BPI.

FIXED INCOME COMMITTEE

(From left) Toffee Topacio, UBP, Yumyum Delno, Deutsche Bank (Chairman), Mike Calleja, BPI, Faye Del Rosario, Citi,N.A., Jill Singian, BPI, Paul Favila, Citi, N.A.

Money Market Association of the Philippines (MART)

Penthouse PDCP Bank Centre, V.A. Rufino corner L.P. Leviste Sts., Salcedo Village, Makati City Tel. Nos. 813-7479 / 894-0148 Fax: 813-2571 E-mail : mart1971@globenet.com.ph Website: www.mart.com.ph

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Message
The Money Market Association of the Philippines (MART) celebrates its 39th Founding Anniversary and 13th MART Consciousness Week. Over the years, MART, through its Board of Directors and Members, has endeavored to keep true to the ideals and aspirations of the Associations founders. Foremost among these is serving the public with the highest dedication and professionalism, all in the interest of contributing to the countrys development. This year MART has chosen the theme Staying Ahead in Innovation, Education and Professionalism to Fuel Investments and Growth. True to its ideals and aspiration. We aspire to provide the investing public an understanding of the nancial markets in the hope that with more knowledge about the market, its dynamics, and products, they, the public we serve, benet more meaningfully. Thus we conducted and will continue to provide venues and programs to enhance our investing publics ability to understand our nancial markets. We recognize the basic but essential elements in sustaining the growth of public patronage of the markets. Thus we imbue to our Members the importance of maintaining the highest degree of professionalism in dealing with our public, with full transparency and dedication. To bring this to its fruition, the MART, with the cooperation and support of the Bangko Sentral ng Pilipinas (BSP), for which we are deeply appreciative, developed a Code of Ethics to govern our activities. An important milestone in our Associations long history, as this Code encapsulates the essence of true service. As a supplement to the Code, a work in progress is the Handbook of Trading Conventions which compiles and standardizes the trading conventions covering different treasury products. Included is a Guide on Trading Practices targetted to clarify different interpretations on certain trading practices and lay down the trading rules as per best global market practice Aside from these ancillary programs, MART continues its endeavor, through and with the Bangko Sentral ng Pilipinas (BSP), the Bureau of the Treasury (BTr), the Securities and Exchange Commission (SEC), and other market participants to achieve reforms in the banking industry, particularly in the interest rate markets, in response to the challenges brought on by a rapidly changing nancial and economic landscape. All in our desire to contribute to our Nations development. We shall continue with our mission as we forge ahead, aware of the challenges and opportunities in the coming years.

JOAN G. POLICARPIO President, Money Market Association of the Philippines

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MART VISION/ MISSION/ VALUES

VISION To be the acknowledged prime mover in the development of the interest rate markets and responsive to the needs of its members and publics. MISSION Our mission is to be a key instrument in the development of the local interest rate markets to be at par with global standards, contributing to economic growth. In pursuit of our mission, we commit to our stakeholders the following: To our members: We will serve as the institutional medium in addressing their collective needs in view of the changing nancial environment To our regulators: We will actively participate in formulating relevant policies and procedures. To the investing public: We will protect and educate the investing public by upholding ethical standards, transparency and use of best practices. OUR VALUES Professionalism Upholding the highest standards of competence in the industry. Integrity Maintaining high moral standards and ethics Pro-activity Being forward looking & initiating actions Social responsibility Sensitive to public interests and contributing to the upliftment of society Dynamism Ability to anticipate and respond to change Commitment Determination in the pursuit of the associations vision and mission

YEAR 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2008 2009

MONEY MARKET ASSOCIATION OF THE PHILIPPINES PAST PRESIDENTS

Victor S. Barrios Manuel P. Alberto Jaime M. Yulo Octavio V. Espiritu Josue A. Camba, Jr. Arsenio M. Bartolome Jorge B. Navarra Ramon A. Albert Manuel A. Bengson Peter B. Favila Alberto S. Villarosa Vicente B. Castillo Rogelio R. Cabunag Carmelo S. Vertido Rolando A. Castro Emilio S. De Quiros, Jr. An De Liu Gregorio A. Delno Danilo A. Alcoseba Reynaldo S.J. Feliciano Enrico S. Cruz John E. Huang Ricardo L. Fernandez Ursula A. Alano Benedicto Jose R. Arcinas Cesar C. Santos, Jr. Antonio V. Paner Rolando R. Avante Jose Arnulfo A. Veloso (Jan. 1 to June 30) Erwin S. Mutuc (July 1 to Dec. 31) Erwin S. Mutuc Roberto Juanchito T. Dispo Rabboni B. Arjonillo Asterio L. Favis, Jr. Pedro M. Florescio, III Dino Rudyardo F. Gasmen Sergio G. Edeza Joselito Ricardo G. Nazario - January 1 to May 20, 2008 Paul Raymond A. Favila - May 21, 2008 to December 31, 2008 Paul Raymond A. Favila

MART LIST OF INCORPORATORS

Manuel P. Alberto Victor S. Barrios Ariel T. Batacan Manuel Q. Bengson Ramon F. Chanyungco Jose J. Cunag Deln M. Dimagiba Octavio V. Espiritu Augusto C. Jayme Jorge Eduardo B. Navarra Silvestre M. Punsalan, Jr. Antonio P. Sundiang Francisco M. Tuazon Luis R. Villafuerte Jaime M. Yulo

MONDAY, NOVEMBER 15, 2010 MART BOARD OF ADVISERS

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MART WEEK COMMITTEE

Ursula A. Alano

(From left) Erick Dones, PVB, Gigi Wong, BDO, Gidget Real, MART, Jojo Dispo, FMIC (Chairman), Rey Montalbo, FMIC, Bernice Nobleza, FMIC, Ervin Belen, MIB.

Asterio L. Favis, Jr.

Erwin S. Mutuc

Ricardo L. Fernandez Benedicto Jose R. Arcinas

Money Market Association of the Philippines 2010 Member Institutions

AB Capital & Investment Corporation AFS Philippines, Inc. Allied Banking Corporation Amalgamated Investment Bancorporation ANZ Banking Group, LTD. Asia United Bank Asiatrust Development Bank Banco De Oro Unibank, Inc. Banco Filipino Savings & Mortgage Bank Bank of America, N.A. - Manila Branch Bank of China Limited, Manila Branch Bank of Commerce Bank of the Philippine Islands BDO Private Bank, Inc. China Banking Corporation Chinatrust (Phils.) Commercial Bank Corporation Citi, N.A. Citibank Savings, Inc. Citystate Savings Bank, Inc. Deutsche Bank, AG - Manila Branch Development Bank of the Philippines East West Banking Corporation Export & Industry Bank First Metro Investment Corporation HSBC ICAP Philippines, Inc. ING Bank, N.V. Manila Branch JP Morgan Chase Bank, N.A. Land Bank of the Philippines Malayan Bank Savings & Mortgage Bank Maybank Philippines, Inc. Metropolitan Bank & Trust Corporation Multinational Investment Bancorporation Pentacapital Investment Corporation Philippine Bank of Communications Philippine Business Bank Philippine Commercial Capital, Inc. Philippine Health Insurance Corporation Philippine National Bank Philippine Postal Savings Bank, Inc. Philippine Savings Bank Philippine Trust Company (PHILTRUST) Philippine Veterans Bank Planters Development Bank Premiere Development Bank Producers Savings Bank Corporation RCBC Savings Bank Rizal Commercial Banking Corporation Robinsons Savings Bank Security Bank Corporation Standard Chartered Bank State Investment Trust, Inc. Sterling Bank of Asia, Inc. The Bank of Tokyo -Mitsubishi UFJ, Ltd. (Manila Branch) The Royal Bank of Scotland Toyota Financial Services Phils., Corporation Tradition Financial Services Philippines, Inc. Tullett Prebon Philippines, Inc. UCPB Savings Bank Unicapital, Incorporated Union Bank of the Philippines United Coconut Planters Bank United Overseas Bank - Philippines Vicsal Investment, Inc.

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MONDAY, NOVEMBER 15, 2010

MONEY MARKET CONSCIOUSNESS WEEK

PROGRAMME OF ACTIVITIES
15-21 November 2010
NOVEMBER 15, MONDAY 6:00 6:30 MART Anniversary Mass at InterContinental Hotel Ballroom Money Market Consciousness Week Kick-Off Cocktails

NOVEMBER 16, TUESDAY 8:30 A.M. Radio Station Interview Saksi sa Dobol B (594 AM) Anchorman: Mike Enriquez Guest: Mr. Roberto Juanchito T. Dispo, MART Past President 9:30 A.M. TV Guesting at Mornings at ANC Guest: Ms. Joan Policarpio, MART President NOVEMBER 17, WEDNESDAY 12:30 P.M. Press Luncheon with EJAP/BSP Press Corp. (round table discussion) MART Board of Directors Venue: Manila Hotel 2:00 P.M. Forum on Creating Wealth Through Common Sense for Common Investors Venue: Yuchengco Institute for Advanced Studies, RCBC Tower Speaker: Mr. Augusto Cosio Jr., President, First Metro Asset Management, Inc. NOVEMBER 18, THURSDAY 9:00 A.M. 1:00 P.M. Brieng for Regulators/Trading Room Visit (BSP, BTr, SEC, PDIC, OIC) Campus Brieng in Cebu Financial Literacy University of Cebu Speaker: Mr. Ervin Paolo S. Belen, Manager, MIB NOVEMBER 19, FRIDAY 2:00 P.M. Economic Update and Investment Outlook for Businessmen/Cebu Clients Casino Espanol, Cebu Speakers: Mr. Roberto Juanchito T. Dispo, EVP, FMIC Mr. Ervin Paolo S. Belen, Manager, MIB 6:00 P.M. Convention Proper at Crimson Resort Speaker: Dr. Emilio Antonio, Jr., UA & P Elections for the 2011 Board of Directors 9:00 Brokers Night at Azure Pool Bar

NOVEMBER 20, SATURDAY 9:00 P.M. Fun Night at Score Sports Bar, Crimson Resort MART @ 39: Staying Ahead in Innovation, Education and Professionalism to Fuel Investments and Growth

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COMMITTEE ON SELF REGULATION, ETHICS AND STANDARDS

FINANCIAL LITERACY COMMITTEE EDUCATION COMMITTEE

(From left) Carel Halog, Landbank (Chairman), Rino Gomez, Tradition, Tiffany Cua, Citi, N.A., Peter Bautista, FMIC.

(From left) Joan Policarpio, Deutsche Bank(Chairperson), Kit Agena, MBTC.

(From left) Martin Timbol, BOC, Paul Reyes, BOC, Rino Gomez, Tradition, Yumyum Delno, Deutsche Bank, Ricky Cebrero, PNB (Chairman)

FELLOWSHIP AND SPORTS COMMITTEE MEMBERSHIP COMMITTEE

(From left) Beth Clutario, BPI, Gray Tacda, PCCI, Tiffany Cua, Citi, N.A, Jojo Dispo, FMIC (Chairman), Rey Montalbo, FMIC, Jennie Alano, Robinsons Bank, Don Javillonar, Planters Bank, Bernice Nobleza, FMIC.

(From left) Oliver De Goma, AMSTEL, Joric Nazario, PVB (Chairman), Gidget ReaL, MART, Alvin Antonio, RCBC, Jane Canada, Planters Bank, Joy Gallega, Tradition, Erick Dones, PVB, Don Javillonar, Planters Bank, (inset) Reese Gaerlan, ICAP.

COMMUNICATIONS COMMITTEE

(From left) Raul Tan, RCBC, Chesa Ibarra, RCBC, Toto Hilado, RCBC (Chairman) Chino Copuyoc, BPI.

CONVENTION COMMITTEE

(From left) Joric Nazario, PVB (Chairman), Jerrick Ramos, BPI, Bing Barbasa, China Bank, Kit Agena, MBTC, Roree Manguerra, PBCom, Gidget Real, MART, Erick Dones, PVB. (Inset) Iris Gonzales, Ayl Olao, MBTC.

COMMITTEE ON ELECTION

(From left) Don Javillonar, Planters Bank, Gray Tacda, PCCI (Chairman), Jun Alvarez, Amalgamated.

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MONDAY, NOVEMBER 15, 2010

Investment Guide
The thought of investing can be scary and vague to most investors. Often times, investors are unsure on where to start while some are scared that their hard-earned funds might get lost on investment scams. A set of investment guidelines and reminders can help investors in reaching their nancial goals. Coupled with the discipline to follow these guidelines, it serves as a roadmap for investors to keep them focus on their goals and protect their hard-earned savings. Below are some key points that all investors should take into consideration in making an investment decision:
Invest with a Purpose Often times many people make the mistake of thinking I am investing to make money. Of course everyone invests to make money, but that is not the primary purpose. Each investor has their own unique purpose when investing. The purpose could be to fund their retirement, save for a big ticket purchase such as a house or college funding. Knowing what kind of purpose or goal will help determine the type of investments that would be appropriate for every investor. for conservative investors to consider conservative investments such as xed income instruments (e.g. government securities and time deposits). Diversify Your Investments and Investments Constraints As the old adage goes, Dont put all your eggs in one basket. It is an unsound investment practice to invest all the assets into the stock market, especially when the market becomes unfavorable. Investors should cut their investments to different assets such as corporate bonds, time deposits and Determine your Risk Tolerance government securities so that they never nd themselves Each investor has their own unique risk tolerance losing everything on a single bad day at the market. depending on their investment time frame and nancial status. Investors must be able to assess and balance their Stay Informed and Educate Yourself. own risk prole and nancial goal. It is more appropriate Having an understanding of the basic principles of investing and the available investment products will help investors reach their goal. There are numerous seminars, short-courses, books and reputable websites that can help equip investors make better investment decisions. Be Aware of possible investment scams and fraud An investment scam is a fraudulent investment operation that pays returns to investors from their own money or money paid by subsequent investors rather than from any actual prot earned. These investment scams are also referred to as Ponzi or Pyramid schemes and should be avoided completely. To help ensure that their investments are protected and sound, the following points should be followed: A. Absence of Regulatory Oversight and Audit. Companies which offer investment opportunities in the Philippines are regulated or licensed by a corresponding regulatory body. Regulatory bodies such as the Securities and Exchange Commission (SEC), Bangko Sentral ng Pilipinas (BSP) and Insurance Commission (IC) monitor the soundness and lawfulness of the different institution for the safety of the investing public. Furthermore, as a precautionary measure, investors should take into consideration possible afliation of a company with an external auditor. Auditors help in providing protection for investors because they examine transactions, review internal controls, accounting procedures and financial reporting systems of a company. Unsound and questionable investments are either not audited or have obscure external auditors providing inaccurate and biased presentation of the company and its products. B. Avoid investments with Big Promises If its to good to be true, then it probably is. There is no safe investment that will provide an investor higher returns over a short period of time. Any investment that promises unusual high returns should be avoided. Even if all the key people in your new investment check out, think twice before jumping in. Ask yourself if you understand really understand how the investment works. If you dont understand how the investment generates the returns that it promises, dont invest your money. It doesnt matter if friends and family tell you theyve already invested and gotten their money back they could simply be early investors in an investment scam or Ponzi scheme. The pointers mentioned above serve as constant reminders to all kinds of investors no matter how much investment experience they have. These allow the investor to be disciplined in making investment decisions and, at the same time, protect oneself from investment scams. Personal investing is a long-term journey and investors should educate themselves constantly. It is never too late for anyone to start investing. It is also not necessary to win in every investment. Not everyone can be or needs to be. Investors just need to be prudent and get started.
Account Manager: CORAZON J. REYES