The Department of Finance is supporting the plan increasing the required trust fund for pre-need plans from 44 percent to 60 percent to better protect investors.

At least three Senate bills are proposing to create the Pre-Need Code that will have more safeguards for policyholders.

The DOF has generally expressed its support to the sweeping reforms in the industry after the collapse of big pre-need firms saw hundreds of millions of pesos of savings go down the drain.

Besides the adjustment in the monthly deposits of the trust fund, the DOF is also supporting the provision that vests the authority to manage and administer the trust fund on a "trust department of a reputable bank, trust company or investment house registered under Philippine laws."

Under the Senate bills, pre-need firms will be supervised and regulated by the Insurance Commission. The Securities and Exchange Commission currently loosely governs said firms.

"We do not interpose any objection to the proposal to vest the Insurance Commission the authority to supervise and regulate the operations of the pre-need industry," the DOF said.

"The DOF fully supports the intention of the bill to establish a code necessary to supervise and regulate the operation of the pre-need industry. There is a strong need for legislative framework that will greatly help the government regulatory body in overseeing its operations," it added

The three bills – SB 64 authored by Sen. Edgardo Angara, SB 105 (Sen. Mar Roxas) and SB 1094 (Sen. Loren Legarda) are currently pending at the committee on banks and financial intermediaries as well as the committee on ways and means.