History of Philippine Mutual Fund


In the late 1980s, recognizing the increasing role of mutual funds as a vital ingredient for the development of Capital Markets, the Asian Development Bank, through Jardines, initiated a study on mutual funds. In 1989, the SEC, in its effort to revive the mutual fund industry established a taskforce for to oversee the formulation of the Implementing Rules and Regulations (IRR) of the ICA . The resulting IRR was promulgated on October 1989 and took effect 90 days later.

The IRR changed the existing provisions of the said law, increasing paid-up capital from Php 500,000 to Php 50,000,000, adding a 24-month hold out, and increasing required audits to four per annum. All of these provisions were intended to protect the interests of the investors and shareholders.