Philippine regulators introduce PERA time deposits and margin trading reforms

Philippine financial regulators have introduced new guidelines aimed at enhancing retirement savings and modernizing stock market trading.

The Bangko Sentral ng Pilipinas (BSP) has approved the inclusion of traditional bank time deposits under the Personal Equity and Retirement Account (PERA) framework. This allows contributors to access tax-advantaged savings with a 5% annual tax credit and 100% tax-exempt growth on interest. To qualify, accounts must have a minimum maturity of 30 days and include “PERA” in their product names. Withdrawals become tax-free once the contributor reaches age 55, provided they have met the five-year contribution rule.

Simultaneously, the Securities and Exchange Commission (SEC) has proposed an overhaul of SRC Rule 48.1 to modernize margin trading in the Philippine stock market. The proposal seeks to replace the 2015 framework with a risk-sensitive methodology based on asset volatility and liquidity. Key changes include increasing the maximum borrowing limit to 60% of security value and standardizing margin call cure periods to three trading days. Under the draft, credit extension would be restricted to PSEi and MSCI Philippines Index stocks, and brokers must maintain at least ₱150 million in unimpaired capital.