Self-Certification For Common Reporting Standard (Crs) Page 7
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chain of control or ownership). Under the CRS the settlor(s), the trustee(s), the
protector(s) (if any), and the beneficiary(ies) or class(es) of beneficiaries, are always
treated as Controlling Persons of a trust, regardless of whether or not any of them
exercises control over the activities of the trust.
Where the settlor(s) of a trust is an Entity then the CRS requires Financial Institutions to
also identify the Controlling Persons of the settlor(s) and when required report them as
Controlling Persons of the trust.
In the case of a legal arrangement other than a trust, “Controlling Person(s) means
persons in equivalent or similar positions.
“Custodial Institution”
The term “Custodial Institution” means any Entity that holds, as a substantial portion of its
business, Financial Assets for the account of others. This is where the Entity’s gross
income attributable to the holding of Financial Assets and related financial services
equals or exceeds 20% of the Entity’s gross income during the shorter of: (i) the three-
year period that ends on 31 December (or the final day of a non-calendar year
accounting period) prior to the year in which the determination is being made; or (ii)
the period during which the Entity has been in existence.
"Depository Institution"
The term “Depository Institution” means any Entity that accepts deposits in the ordinary
course of a banking or similar business.
“FATCA”
FATCA stands for the U.S. provisions commonly known as the Foreign Account Tax
Compliance Act, which were enacted into U.S. law as part of the Hiring Incentives to
Restore Employment (HIRE) Act on March 18, 2010. FATCA creates a new information
reporting and withholding regime for payments made to certain non-U.S. financial
institutions and other non-U.S. entities.
“Entity”
The term “Entity” means a legal person or a legal arrangement, such as a corporation,
organisation, partnership, trust or foundation. This term covers any person other than an
individual (i.e. a natural person).
“Financial Institution”
The term “Financial Institution” means a “Custodial Institution”, a “Depository Institution”,
an “Investment Entity”, or a “Specified Insurance Company”. Please see the relevant
domestic guidance and the CRS for further classification definitions that apply to
Financial Institutions.
"Investment Entity”
The term “Investment Entity” includes two types of Entities:
(i) an Entity that primarily conducts as a business one or more of the following
activities or operations for or on behalf of a customer:
Trading in money market instruments (cheques, bills, certificates of deposit,
▪
derivatives, etc.); foreign exchange; exchange, interest rate and index
instruments; transferable securities; or commodity futures trading;
Individual and collective portfolio management; or
▪
Otherwise investing, administering, or managing Financial Assets or money on
▪
behalf of other persons.
Such activities or operations do not include rendering non-binding investment
advice to a customer.
(ii) ”The second type of “Investment Entity” (“Investment Entity managed by another
Financial Institution”) is any Entity the gross income of which is primarily attributable
to investing, reinvesting, or trading in Financial Assets where the Entity is managed
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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