10 Questions
Who is authorized to act as the Administrator of the UCP?
Trust Officers Association of the Philippines (TOAP)
When should all UITF Marketing Personnel comply with the Qualification Requirements?
By the end of 2021
What is the purpose of UCP?
Certification of personnel involved in sales of UITFs
Who must be certified as a UITF Marketing Personnel through UCP?
All personnel involved in sales of UITFs
Which organization must administer the UCP according to Circular No. 1018?
Reputable financial services industry association/organization acceptable to BSP
What is the action or process of investing money for profit or material result?
A monetary asset purchased with the idea that the asset will provide income in the future or will later be sold at a higher price for a profit
What makes an investment risky?
Time inflation risk or uncertainty
Are cash receipts guaranteed in terms of timing and amount?
No, they are not guaranteed in terms of timing and amount
Why do capital/financial markets exist?
To provide a platform for buying and selling financial instruments and assets
What is the potential relationship between higher income and probabilities of loss according to the Risk-Reward Rule?
Higher income is always accompanied by higher probabilities of loss
Study Notes
UCP Administration
- Only authorized individuals can act as the Administrator of the UCP.
Qualification Requirements
- All UITF Marketing Personnel must comply with the Qualification Requirements.
Purpose of UCP
- The purpose of UCP is to certify UITF Marketing Personnel.
Certification Requirements
- UITF Marketing Personnel who must be certified through UCP include those involved in selling, marketing, or distributing UITFs.
UCP Administration (according to Circular No. 1018)
- The Securities and Exchange Commission (SEC) must administer the UCP.
Investment Definition
- Investment is the action or process of investing money for profit or material result.
Investment Risks
- An investment is considered risky when the probability of loss is high.
Cash Receipts
- Cash receipts are not guaranteed in terms of timing and amount, making them uncertain.
Capital/Financial Markets
- Capital/financial markets exist to facilitate the buying and selling of financial assets.
Risk-Reward Rule
- According to the Risk-Reward Rule, there is a potential relationship between higher income and higher probabilities of loss, meaning that investments with higher potential returns often come with higher risks.
Test your knowledge about the UITF Certification Program (UCP) which is mandatory for all personnel involved in the sales of Unit Investment Trust Funds (UITFs) in the Philippines. This quiz covers the certification requirements and regulations outlined in Circular No. 1018.
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