Last week I send an email to COL support asking for details on how to open stocks trading account for kids. I don’t have kids yet, but I will need this in future and for the benefit of my blog readers as well.
So here’s the detailed guide from them.
In Trust For (ITF)
An ITF account is for a family member and a child. Since a minor cannot enter into a contract, a family member who is of age can open the account for the child. Once the child becomes 18 years of age, the account can be modified into a joint account.
Requirements to Open an ITF Account
- Customer Account Information Form (CAIF)
- Online Securities Trading Agreement (OSTA)
- Specimen Signature Card (Sig Card)
- ITF Supplementary Agreement
- Minimum Initial Deposit: Php 5000 (refer to my previous blog post HERE on how to deposit the money)
- Parent – photocopy of 1 valid government issued ID
- Child – birth certificate
- Proof of Billing (waived with personal appearance on COL office)
(NOTE: If the primary account holder is not the biological parent of the beneficiary, adoption or court papers showing his appointment as the beneficiary’s guardian is required.)
ITF Account Holders
An ITF account holder can only have (1) parent as the primary account holder and (1) beneficiary. A parent with more than (1) child can open several ITF accounts, (1) for each child.
How to transfer the account to the beneficiary
Upon the beneficiary reaching 18 years old, the primary account holder may convert the account into a JOINT account with the beneficiary or an INDIVIDUAL account under the beneficiary’s name.
To convert the account, both the primary account holder and the beneficiary must submit the following:
- Formal letter to COL with clear instructions to convert the ITF account signed by both parties
- New set of account opening forms completed by: – Both parties, if the ITF acount will be converted to a JOINT account – The beneficiary, if the account will be converted into an INDIVIDUAL account
- Photocopy of (1) valid government issued ID of the account holder/s of the converted account
- Duly notarized quitclaim form executed by both parties
(NOTE: In case the account holder is a foreigner, additional requirements apply.)
Withdrawals from ITF Accounts
In case of withdrawal of funds from the ITF account, COL will issue a check in the name of the primary account holder as the payee.
Upliftment from ITF Accounts
If a primary account holder would like to convert the electronic shares into stock certificate form, stock certificates shall be issued in the name of the primary account holder.
Steps in Opening Account
Fill out an application form which you can found HERE, total 3 files. For the Account Type, check OTHERS and write ITF beside it to specify that your account is for a child.
The family member who is of age will need to fill out the PRIMARY ACCOUNT HOLDER portion of the forms while the child’s details should be under the SECONDARY ACCOUNT HOLDER column.
The Primary Account Holder should submit his/her government issued ID and a billing statement while the child only needs a copy of a birth certificate or a passport.
The Primary Account Holder can sign for the child on the application forms.
Hard copies of the forms must be submitted to COL office at below address:
2403B East Tower, Philippine Stock Exchange Centre, Exchange Road,
Ortigas Center, Pasig City, 1605 Philippines