The Bangko Sentral ng Pilipinas (BSP) has amended its regulations to expand investment opportunities for overseas Filipinos by exempting Personal Equity and Retirement Account (PERA) Unit Investment Trust Funds (UITFs) from the non-resident ownership rule that previously restricted their ability to invest in central bank securities.

Under earlier rules, non-residents could not own BSP securities – debt instruments issued by the central bank – while UITFs were only allowed to invest in these securities if non-residents owned less than 10 percent of the fund. With the latest amendment, PERA-accredited UITFs are now exempt from that ownership cap, allowing more diversified investments for overseas Filipino investors.

At present, nine out of 13 PERA-UITFs exceed the 10 percent non-resident ownership limit, effectively barring them from investing in BSP securities until now. The reform removes that hurdle, broadening investment access and deepening the local financial market.

Launched in 2016, eight years after the enactment of the PERA Law (Republic Act No. 9505), the PERA program aims to encourage Filipinos to save voluntarily for retirement, complementing mandatory contributions under the Social Security System (SSS) and the Government Service Insurance System (GSIS).

PERA contributors can invest in five types of products—trust funds, mutual funds, insurance, pre-need plans, and government or listed bonds—while enjoying a 5% tax credit on annual contributions. Individuals can invest up to P100,000 annually, while overseas Filipino workers (OFWs) may contribute up to P200,000 per year.

UITFs, managed by banks and trust companies under BSP supervision, pool funds from investors to create diversified portfolios, even for small savers. By enabling PERA-UITFs to participate in central bank securities, the BSP hopes to strengthen long-term savings behavior, deepen capital market participation, and bolster financial inclusion among Filipinos worldwide.