SEC Issues Rules on Umbrella Funds

Seen on the SEC official Facebook page – The Securities and Exchange Commission (SEC) has issued rules on the creation of Umbrella Funds, expanding the structuring options for investment companies in a bid to provide greater operational flexibility and administrative efficiency for fund managers and increase portfolio diversification options for investors.

The Commission on April 8 issued SEC Memorandum Circular No. 14, series of 2026, which provided for the Rules on Umbrella Funds, outlining the policy on the registration, operation, and reporting of open-end investment companies structured as Umbrella Funds and its Sub-funds.

“These new rules provide the public with clear guidance on the registration and reportorial requirements of these funds, as part of our commitment to enhance operational adaptability and streamline administrative processes of funds and fund managers, while expanding the range of investment opportunities in the capital market,” SEC Chairperson Francis Lim said.

“By allowing single investment firms to pursue other investment objectives and strategies through the creation of sub-funds, registration and monitoring of the umbrella fund and accompanying sub-funds will be more efficient while also providing investors with the opportunity to conveniently diversify their portfolio,” Chairperson Lim added.

Under the rules, an Umbrella Fund refers to a newly formed or existing registered open-end unit-issuing investment company that holds two or more Sub-Funds, such as equity, bonds or fixed incomes, among others, with segregated assets and liabilities.

Read the full memorandum circular here: https://www.sec.gov.ph/…/sec-mc-no-14-series-of…/

Read the full press release here: https://www.sec.gov.ph/…/sec-issues-rules-on-umbrella…/

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