Who must approve UITF plan documents?

The correct answer reflects the requirement that for a Unit Investment Trust Fund (UITF) to be established, its plan documents must obtain approval from the issuer's Board of Directors and the Bangko Sentral ng Pilipinas (BSP). This approval is necessary because UITFs are regulated investment schemes and their operational guidelines, investment strategies, and structures must comply with legal standards and regulatory frameworks set forth by the BSP, which oversees the soundness of financial institutions.

The involvement of the Board of Directors is critical as they represent the governance structure of the issuing entity and are responsible for ensuring that all aspects of the UITF are in line with corporate policies and regulatory requirements. This rigorous approval process ensures that the interests of investors are safeguarded and that the fund operates within the defined legal and financial parameters.

Other choices involve parties that may have roles in the administration or recommendation of the UITF but do not have the authority to approve its documents in the same manner. For example, financial advisors may offer advice on UITFs but are not decision-makers on the fund's establishment; similarly, trustees and beneficiaries are concerned with management and benefit distribution rather than initial plan documentation approval. The Securities and Exchange Commission, while a regulatory body, is not involved in the specific approval of