Practice question
A firm acts only as trustee managing client property under its trust authority. A client argues that this automatically authorizes it to accept bank deposits and conduct banking operations. Which is correct?
- Every trust license automatically authorizes all banking
- All financial activities are legally identical
- The client can grant a banking license
- Trust authority eliminates all other regulation
- Trust functions and banking authority are distinct; banking operations need the applicable BSP authority
Legal references
- https://lawphil.net/statutes/repacts/ra2000/ra_8791_2000.html — RA 8791, sections 3, 4, 6 and 79–83
Answer this question in flashcards to review your response and continue practicing.