Self-Certification For Common Reporting Standard (Crs) Page 6
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e) the NFE is not yet operating a business and has no prior operating history, (a “ start-
up NFE”) but is investing capital into assets with the intent to operate a business other
than that of a Financial Institution, provided that the NFE does not qualify for this
exception after the date that is 24 months after the date of the initial organisation of
the NFE;
f) the NFE was not a Financial Institution in the past five years, and is in the process of
liquidating its assets or is reorganising with the intent to continue or recommence
operations in a business other than that of a Financial Institution;
g) the NFE primarily engages in financing and hedging transactions with, or for, Related
Entities that are not Financial Institutions, and does not provide financing or hedging
services to any Entity that is not a Related Entity, provided that the group of any such
Related Entities is primarily engaged in a business other than that of a Financial
Institution; or
h) the NFE meets all of the following requirements (a “non-profit NFE”) :
i) it is established and operated in its jurisdiction of residence exclusively for religious,
charitable, scientific, artistic, cultural, athletic, or educational purposes; or it is
established and operated in its jurisdiction of residence and it is a professional
organisation, business league, chamber of commerce, labour organisation,
agricultural or horticultural organisation, civic league or an organisation operated
exclusively for the promotion of social welfare;
ii) it is exempt from income tax in its jurisdiction of residence;
iii) it has no shareholders or members who have a proprietary or beneficial interest in
its income or assets;
iv) the applicable laws of the NFE’s jurisdiction of residence or the NFE’s formation
documents do not permit any income or assets of the NFE to be distributed to, or
applied for the benefit of, a private person or non-charitable Entity other than
pursuant to the conduct of the NFE’s charitable activities, or as payment of
reasonable compensation for services rendered, or as payment representing the
fair market value of property which the NFE has purchased; and
v) the applicable laws of the NFE’s jurisdiction of residence or the NFE’s formation
documents require that, upon the NFE’s liquidation or dissolution, all of its assets be
distributed to a Governmental Entity or other non-profit organisation, or escheat to
the government of the NFE’s jurisdiction of residence or any political subdivision.
Note: Certain entities (such as U.S. Territory NFFEs) may qualify for Active NFFE status
under FATCA but not Active NFE status under the CRS.
“Control”
“Control” over an Entity is generally exercised by the natural person(s) who ultimately
has a controlling ownership interest (typically on the basis of a certain percentage (e.g.
25%)) in the Entity. Where no natural person(s) exercises control through ownership
interests, the Controlling Person(s) of the Entity will be the natural person(s) who
exercises control of the Entity through other means. Where no natural person(s) is/are
identified as exercising control of the Entity through ownership interests, then under the
CRS the Reportable Person is deemed to be the natural person who hold the position of
senior managing official.
“Controlling Person(s)”
“Controlling Persons” are the natural person(s) who exercise control over an entity.
Where that entity is treated as a Passive Non-Financial Entity (“Passive NFE”) then a
Financial Institution is required to determine whether or not these Controlling Persons are
Reportable Persons. This definition corresponds to the term “beneficial owner”
described in Recommendation 10 and the Interpretative Note on Recommendation 10
of the Financial Action Task Force Recommendations (as adopted in February 2012).
In the case of a trust, the Controlling Person(s) are the settlor(s), the trustee(s), the
protector(s) (if any), the beneficiary(ies) or class(es) of beneficiaries, or any other
natural person(s) exercising ultimate effective control over the trust (including through a
Sharefunds Limited is authorised and regulated by the Financial Conduct Authority and is entered on the register under reference 227807
Registered in England – Number 04856420
Registered Office: Bow House, 1A Bow Lane, London, EC4M 9EE
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