# Council Directive 2014/107/EUShow full title

Council Directive 2014/107/EU of 9 December 2014 amending Directive 2011/16/EU as regards mandatory automatic exchange of            information in the field of taxation         

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U.K.

# Council Directive 2014/107/EU                     

# of 9 December 2014

# amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 115 thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinion of the European Parliament,

Having regard to the opinion of the European Economic and Social Committee(1),                        

Acting in accordance with a special legislative procedure,

Whereas:

(1)In recent years, the challenge posed by cross-border tax fraud and tax evasion has increased considerably and has become a                              major focus of concern within the Union and at global level. Unreported and untaxed income is considerably reducing national                              tax revenues. An increase in the efficiency and effectiveness of tax collection is therefore urgently needed. The automatic                              exchange of information constitutes an important tool in this regard and the Commission in its communication of 6 December                              2012 containing an Action Plan to strengthen the fight against tax fraud and tax evasion highlighted the need to promote vigorously                              the automatic exchange of information as the future European and international standard for transparency and exchange of information                              in tax matters.

(2)The importance of automatic exchange of information as a means to combat cross-border tax fraud and tax evasion has recently                              been recognised also at the international level (G20 and G8). Following the negotiations between the United States of America                              and several other countries, including all Member States, on bilateral automatic exchange agreements to implement the United                              States' Foreign Account Tax Compliance Act (commonly known as ‘FATCA’), the Organisation for Economic Cooperation and Development                              (OECD) was mandated by the G20 to build on these agreements to develop a single global standard for automatic exchange of                              tax information.

(3)The European Council on 22 May 2013 requested the extension of automatic information exchange at Union and global levels with                              a view to combating tax fraud, tax evasion and aggressive tax planning. The European Council also welcomed ongoing efforts                              made in the G20, G8, and OECD to develop a global standard for automatic exchange of financial account information in tax                              matters.

(4)In February 2014, the OECD released the main elements of a global standard for automatic exchange of financial account information                              in tax matters, namely a Model Competent Authority Agreement and a Common Reporting Standard, which were subsequently endorsed                              by the G20 Finance Ministers and Central Bank Governors. In July 2014, the OECD Council released the full global standard,                              including its remaining elements, namely the Commentaries on the Model Competent Authority Agreement and Common Reporting                              Standard and the Information Technology Modalities for implementing the global standard. The entire global standard package                              was endorsed by G20 Finance Ministers and Central Bank Governors in September 2014.

(5)Council Directive 2011/16/EU(2) already provides for the mandatory automatic exchange of information between Member States on certain categories of income                              and capital, mainly of a non-financial nature, that taxpayers hold in Member States other than their State of residence. It                              also establishes a step-by-step approach to reinforcing automatic exchange of information by its progressive extension to                              new categories of income and capital and the removal of the condition that the information only has to be exchanged if available.                              Currently, given the increased opportunities to invest abroad in a wide range of financial products, the existing Union and                              international administrative cooperation instruments in the field of taxation have become less effective in combating cross-border                              tax fraud and evasion.

(6)As highlighted by the request of the European Council, it is appropriate to bring forward the extension of automatic information                              exchange already envisaged in Article 8(5) of Directive 2011/16/EU with respect to residents in other Member States. A Union                              initiative will ensure a coherent, consistent and comprehensive Union-wide approach to the automatic exchange of information                              in the internal market which would lead to cost savings both for tax administrations and economic operators.

(7)The fact that Member States have concluded or are close to concluding agreements with the United States of America relating                              to FATCA means that those Member States are providing or will provide for wider cooperation within the meaning of Article                              19 of Directive 2011/16/EU, and are or will be under an obligation to provide such wider cooperation to other Member States                              as well.

(8)The conclusion of parallel and uncoordinated agreements by Member States under Article 19 of Directive 2011/16/EU could lead                              to distortions that would be detrimental to the smooth functioning of the internal market. Expanded automatic information                              exchange on the basis of a Union-wide legislative instrument would obviate the need for Member States to invoke that Article,                              with a view to concluding bilateral or multilateral agreements that may be considered appropriate on the same subject in the                              absence of relevant Union legislation.

(9)In order to minimise costs and administrative burdens both for tax administrations and for economic operators, it is also                              crucial to ensure that the expanded scope of automatic exchange of information within the Union is in line with international                              developments. To achieve this objective, Member States should require their Financial Institutions to implement reporting                              and due diligence rules which are fully consistent with those set out in the Common Reporting Standard developed by the OECD.                              Moreover, the scope of Article 8 of Directive 2011/16/EU should be extended to include the same information covered by the                              OECD Model Competent Authority Agreement and Common Reporting Standard. It is expected that each Member State would have only                              one single list of domestically-defined Non-Reporting Financial Institutions and Excluded Accounts that it would use both                              when implementing this Directive and for the application of other agreements implementing the global standard.

(10)The categories of Reporting Financial Institutions and Reportable Accounts covered by this Directive are designed to limit                              the opportunities for taxpayers to avoid being reported by shifting assets to Financial Institutions or investing in financial                              products that are outside the scope of this Directive. However, certain Financial Institutions and accounts that present a                              low risk of being used to evade tax should be excluded from the scope of this Directive. Thresholds should not be generally                              included in this Directive as they could be easily circumvented by splitting accounts into different Financial Institutions.                              The financial information which is required to be reported and exchanged should concern not only all relevant income (interests,                              dividends and similar types of income) but also account balances and sale proceeds from Financial Assets, in order to address                              situations where a taxpayer seeks to hide capital that in itself represents income or assets with regard to which tax has                              been evaded. Therefore, the processing of information under this Directive is necessary and proportionate for the purpose                              of enabling Member States' tax administrations to correctly and unequivocally identify the taxpayers concerned, to administer                              and enforce their tax laws in cross-border situations, to assess the likelihood of tax evasion being perpetrated, and to avoid                              unnecessary further investigations.

(11)Reporting Financial Institutions could meet their information obligations towards individual Reportable Persons by following                              the detailed arrangements on communication, including its frequency, provided for by their internal procedures in accordance                              with their domestic law.

(12)Reporting Financial Institutions, sending Member States and receiving Member States, in their capacity as data controllers,                              should retain information processed in accordance with this Directive for no longer than necessary to achieve the purposes                              thereof. Given the differences in Member States' legislation, the maximum retention period should be set by reference to the                              statute of limitations provided by each data controller's domestic tax legislation.

(13)In implementing this Directive, Member States should use the Commentaries on the Model Competent Authority Agreement and Common                              Reporting Standard, developed by the OECD, as a source of illustration or interpretation and in order to ensure consistency                              in application across Member States. Union action in this area should continue to take particular account of future developments                              at OECD level.

(14)The condition that automatic exchange may be subject to the availability of the information requested as provided for in Article                              8(1) of Directive 2011/16/EU should not apply to the new items as introduced by this Directive into Directive 2011/16/EU.

(15)The reference to a threshold in Article 8(3) of Directive 2011/16/EU should be removed since such a threshold does not appear                              to be manageable in practice.

(16)The review of the condition of availability to be undertaken in 2017 should be extended to all the five categories referred                              to in Article 8(1) of Directive 2011/16/EU, so that the case for exchange of information by all Member States on all those                              categories could be examined.

(17)This Directive respects the fundamental rights and observes the principles which are recognised in particular by the Charter                              of Fundamental Rights of the European Union, including the right to the protection of personal data.

(18)Since the objective of this Directive, namely the efficient administrative cooperation between Member States under conditions                              compatible with the proper functioning of the internal market, cannot be sufficiently achieved by the Member States but can                              rather, by reason of the uniformity and effectiveness required, be better achieved at Union level, the Union may adopt measures,                              in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with                              the principle of proportionality, as set out in that Article, this Directive does not go beyond what is necessary in order                              to achieve that objective.

(19)In view of existing structural differences, Austria should be allowed to exchange information automatically under this Directive                              for the first time by 30 September 2018 instead of 30 September 2017.

(20)Directive 2011/16/EU should therefore be amended accordingly,

HAS ADOPTED THIS DIRECTIVE:

# Article 1U.K.

Directive 2011/16/EU is amended as follows:

In Article 3, point 9 is replaced by the following:

## ‘9.“automatic exchange” means the systematic communication of predefined information on residents in other Member States to the                                    relevant Member State of residence, without prior request, at pre-established regular intervals. In the context of Article                                    8, available information refers to information in the tax files of the Member State communicating the information, which is                                    retrievable in accordance with the procedures for gathering and processing information in that Member State. In the context                                    of Article 8(3a), Article 8(7a), Article 21(2) and Article 25(2) and (3) any capitalised term shall have the meaning that                                    it has under the corresponding definitions set out in Annex I.’.

Article 8 is amended as follows:

Paragraph 3 is replaced by the following:

‘3.The competent authority of a Member State may indicate to the competent authority of any other Member State that it does not                                             wish to receive information on one or several of the categories of income and capital referred to in paragraph 1. It shall                                             also inform the Commission thereof.                                    

A Member State may be considered as not wishing to receive information in accordance with paragraph 1, if it does not inform                                          the Commission of any single category in respect of which it has information available.’;                                    

the following paragraph is inserted:

‘3a.Each Member State shall take the necessary measures to require its Reporting Financial Institutions to perform the reporting                                             and due diligence rules included in Annexes I and II and to ensure effective implementation of, and compliance with, such                                             rules in accordance with Section IX of Annex I.                                    

Pursuant to the applicable reporting and due diligence rules contained in Annexes I and II, the competent authority of each                                          Member State shall, by automatic exchange, communicate within the deadline laid down in point (b) of paragraph 6 to the competent                                          authority of any other Member State, the following information regarding taxable periods as from 1 January 2016 concerning                                          a Reportable Account:                                    

(a)the name, address, TIN(s) and date and place of birth (in the case of an individual) of each Reportable Person that is an                                             Account Holder of the account and, in the case of any Entity that is an Account Holder and that, after application of due                                             diligence rules consistent with the Annexes, is identified as having one or more Controlling Persons that is a Reportable                                             Person, the name, address, and TIN(s) of the Entity and the name, address, TIN(s) and date and place of birth of each Reportable                                             Person;                                    

(b)the account number (or functional equivalent in the absence of an account number);                                    

(c)the name and identifying number (if any) of the Reporting Financial Institution;                                    

(d)the account balance or value (including, in the case of a Cash Value Insurance Contract or Annuity Contract, the Cash Value                                             or surrender value) as of the end of the relevant calendar year or other appropriate reporting period or, if the account was                                             closed during such year or period, the closure of the account;                                    

(e)in the case of any Custodial Account:                                    

the total gross amount of interest, the total gross amount of dividends, and the total gross amount of other income generated                                                   with respect to the assets held in the account, in each case paid or credited to the account (or with respect to the account)                                                   during the calendar year or other appropriate reporting period; and                                             

the total gross proceeds from the sale or redemption of Financial Assets paid or credited to the account during the calendar                                                   year or other appropriate reporting period with respect to which the Reporting Financial Institution acted as a custodian,                                                   broker, nominee, or otherwise as an agent for the Account Holder;                                             

(f)in the case of any Depository Account, the total gross amount of interest paid or credited to the account during the calendar                                             year or other appropriate reporting period; and                                    

(g)in the case of any account not described in point (e) or point (f), the total gross amount paid or credited to the Account                                             Holder with respect to the account during the calendar year or other appropriate reporting period with respect to which the                                             Reporting Financial Institution is the obligor or debtor, including the aggregate amount of any redemption payments made to                                             the Account Holder during the calendar year or other appropriate reporting period.                                    

For the purposes of the exchange of information under this paragraph, unless otherwise foreseen in this paragraph or in the                                          Annexes, the amount and characterisation of payments made with respect to a Reportable Account shall be determined in accordance                                          with national legislation of the Member State which communicates the information.                                    

The first and second subparagraphs of this paragraph shall prevail over point (c) of paragraph 1 or any other Union legal                                          instrument, including Council Directive 2003/48/EC(3), to the extent that the exchange of information at issue would fall within the scope of point (c) of paragraph 1 or of any                                          other Union legal instrument, including Directive 2003/48/EC.’;                                    

paragraph 5 is replaced by the following:

‘5.Before 1 July 2017, the Commission shall submit a report that provides an overview and an assessment of the statistics and                                             information received, on issues such as the administrative and other relevant costs and benefits of the automatic exchange                                             of information, as well as practical aspects linked thereto. If appropriate, the Commission shall present a proposal to the                                             Council regarding the categories and the conditions laid down in paragraph 1, including the condition that information concerning                                             residents in other Member States has to be available, or the items referred to in paragraph 3a, or both.                                    

When examining a proposal presented by the Commission, the Council shall assess further strengthening of the efficiency and                                          functioning of the automatic exchange of information and raising the standard thereof, with the aim of providing that:                                    

(a)the competent authority of each Member State shall, by automatic exchange, communicate to the competent authority of any other                                             Member State, information regarding taxable periods as from 1 January 2017 concerning residents in that other Member State,                                             on all categories of income and capital listed in paragraph 1, as they are to be understood under the national legislation                                             of the Member State communicating the information; and                                    

(b)the lists of categories and items laid down in paragraphs 1 and 3a be extended to include other categories and items, including                                             royalties.’;                                    

paragraph 6 is replaced by the following:

‘6.The communication of information shall take place as follows:                                    

(a)for the categories laid down in paragraph 1: at least once a year, within six months following the end of the tax year of                                             the Member State during which the information became available;                                    

(b)for the information laid down in paragraph 3a: annually, within nine months following the end of the calendar year or other                                             appropriate reporting period to which the information relates.’;                                    

the following paragraph is inserted:

‘7a.For the purposes of subparagraphs B.1(c) and C.17(g) of Section VIII of Annex I, each Member State shall, by 31 July 2015,                                             provide to the Commission the list of entities and accounts that are to be treated, respectively, as Non-Reporting Financial                                             Institutions and Excluded Accounts. Each Member State shall also inform the Commission if any changes in this respect occur.                                             The Commission shall publish in the *Official Journal of the European Union* a compiled list of the information received and shall update the list as necessary.                                    

Member States shall ensure that those types of Non-Reporting Financial Institutions and Excluded Accounts satisfy all the                                          requirements listed in subparagraphs B.1(c) and C.17(g) of Section VIII of Annex I, and in particular that the status of a                                          Financial Institution as a Non-Reporting Financial Institution or the status of an account as an Excluded Account does not                                          frustrate the purposes of this Directive.’.                                    

In Article 20, paragraph 4 is replaced by the following:

‘4.The automatic exchange of information pursuant to Article 8 shall be sent using a standard computerised format aimed at facilitating                                    such automatic exchange and based on the existing computerised format pursuant to Article 9 of Directive 2003/48/EC, to be                                    used for all types of automatic exchange of information, adopted by the Commission in accordance with the procedure referred                                    to in Article 26(2).’.                           

In Article 21, paragraph 2 is replaced by the following:

‘2.The Commission shall be responsible for whatever development of the CCN network is necessary to permit the exchange of that                                    information between Member States and for ensuring the security of the CCN network.                           

Member States shall be responsible for whatever development of their systems is necessary to enable that information to be                                 exchanged using the CCN network and for ensuring the security of their systems.                           

Member States shall ensure that each individual Reportable Person is notified of a breach of security with regard to his data                                 when that breach is likely to adversely affect the protection of his personal data or privacy.                           

Member States shall waive all claims for the reimbursement of expenses incurred in applying this Directive except, where appropriate,                                 in respect of fees paid to experts.’.                           

Article 25 is amended as follows:

the current text of Article 25 becomes paragraph 1;

the following paragraphs are inserted:

‘2.Reporting Financial Institutions and the competent authorities of each Member State shall be considered to be data controllers                                             for the purposes of Directive 95/46/EC.                                    

3.Notwithstanding paragraph 1, each Member State shall ensure that each Reporting Financial Institution under its jurisdiction                                             informs each individual Reportable Person concerned that the information relating to him referred to in Article 8(3a) will                                             be collected and transferred in accordance with this Directive and shall ensure that the Reporting Financial Institution provides                                             to that individual all information that he is entitled to under its domestic legislation implementing Directive 95/46/EC in                                             sufficient time for the individual to exercise his data protection rights and, in any case, before the Reporting Financial                                             Institution concerned reports the information referred to in Article 8(3a) to the competent authority of its Member State                                             of residence.                                    

4.Information processed in accordance with this Directive shall be retained for no longer than necessary to achieve the purposes                                             of this Directive, and in any case in accordance with each data controller's domestic rules on statute of limitations.’.                                    

Annexes I and II, the texts of which are set out in the Annex to this Directive, are added.

# Article 2U.K.

1.Member States shall adopt and publish, by 31 December 2015, the laws, regulations and administrative provisions necessary                        to comply with this Directive. They shall immediately communicate to the Commission the text of those measures.                  

They shall apply those measures from 1 January 2016.

When Member States adopt those measures, they shall contain a reference to this Directive or be accompanied by such a reference                     on the occasion of their official publication. Member States shall determine how such reference is to be made.                  

2.Notwithstanding point (b) of point (2) of Article 1 and paragraph 1 of this Article, Austria shall apply the provisions of                        this Directive from 1 January 2017, with respect to taxable periods as from that date.                  

3.Member States shall communicate to the Commission the text of the main provisions of national law which they adopt in the                        field covered by this Directive.                  

# Article 3U.K.

This Directive shall enter into force on the twentieth day following that of its publication in the *Official Journal of the European Union*.                  

# Article 4U.K.

This Directive is addressed to the Member States.

Done at Brussels, 9 December 2014.

*For the Council*                            

*The President*                            

P. C. Padoan                            

## ANNEXU.K.

### “ANNEX IREPORTING AND DUE DILIGENCE RULES FOR FINANCIAL ACCOUNT INFORMATION

This Annex lays down the reporting and due diligence rules that have to be applied by Reporting Financial Institutions in order                     to enable the Member States to communicate, by automatic exchange, the information referred to in Article 8(3a) of this Directive.                     This Annex also describes the rules and administrative procedures that Member States shall have in place to ensure effective                     implementation of, and compliance with, the reporting and due diligence procedures set out below.                  

#### SECTION IU.K.**GENERAL REPORTING REQUIREMENTS**

Subject to paragraphs C through E, each Reporting Financial Institution must report to the competent authority of its Member                              State the following information with respect to each Reportable Account of such Reporting Financial Institution:                           

the name, address, Member State(s) of residence, TIN(s) and date and place of birth (in the case of an individual) of each                                       Reportable Person that is an Account Holder of the account and, in the case of any Entity that is an Account Holder and that,                                       after application of the due diligence procedures consistent with Sections V, VI and VII, is identified as having one or more                                       Controlling Persons that is a Reportable Person, the name, address, Member State(s) and (if any) other jurisdiction(s) of                                       residence and TIN(s) of the Entity and the name, address, Member State(s) of residence, TIN(s) and date and place of birth                                       of each Reportable Person;                                    

the account number (or functional equivalent in the absence of an account number);

the name and identifying number (if any) of the Reporting Financial Institution;

the account balance or value (including, in the case of a Cash Value Insurance Contract or Annuity Contract, the Cash Value                                       or surrender value) as of the end of the relevant calendar year or other appropriate reporting period or, if the account was                                       closed during such year or period, the closure of the account;                                    

in the case of any Custodial Account:

the total gross amount of interest, the total gross amount of dividends, and the total gross amount of other income generated                                                with respect to the assets held in the account, in each case paid or credited to the account (or with respect to the account)                                                during the calendar year or other appropriate reporting period; and                                             

the total gross proceeds from the sale or redemption of Financial Assets paid or credited to the account during the calendar                                                year or other appropriate reporting period with respect to which the Reporting Financial Institution acted as a custodian,                                                broker, nominee, or otherwise as an agent for the Account Holder;                                             

in the case of any Depository Account, the total gross amount of interest paid or credited to the account during the calendar                                       year or other appropriate reporting period; and                                    

in the case of any account not described in subparagraph A(5) or (6), the total gross amount paid or credited to the Account                                       Holder with respect to the account during the calendar year or other appropriate reporting period with respect to which the                                       Reporting Financial Institution is the obligor or debtor, including the aggregate amount of any redemption payments made to                                       the Account Holder during the calendar year or other appropriate reporting period.                                    

The information reported must identify the currency in which each amount is denominated.

Notwithstanding subparagraph A(1), with respect to each Reportable Account that is a Pre-existing Account, the TIN(s) or date                              of birth is not required to be reported if such TIN(s) or date of birth is not in the records of the Reporting Financial Institution                              and is not otherwise required to be collected by such Reporting Financial Institution under domestic law or any Union legal                              instrument. However, a Reporting Financial Institution is required to use reasonable efforts to obtain the TIN(s) and date                              of birth with respect to Pre-existing Accounts by the end of the second calendar year following the year in which Pre-existing                              Accounts were identified as Reportable Accounts.                           

Notwithstanding subparagraph A(1), the TIN is not required to be reported if a TIN is not issued by the relevant Member State                              or other jurisdiction of residence.                           

Notwithstanding subparagraph A(1), the place of birth is not required to be reported unless:

the Reporting Financial Institution is otherwise required to obtain and report it under domestic law or the Reporting Financial                                       Institution is or has been otherwise required to obtain and report it under any Union legal instrument in effect or that was                                       in effect on 5 January 2015; and                                    

it is available in the electronically searchable data maintained by the Reporting Financial Institution.

#### SECTION IIU.K.**GENERAL DUE DILIGENCE REQUIREMENTS**

An account is treated as a Reportable Account beginning as of the date it is identified as such pursuant to the due diligence                              procedures in Sections II through VII and, unless otherwise provided, information with respect to a Reportable Account must                              be reported annually in the calendar year following the year to which the information relates.                           

The balance or value of an account is determined as of the last day of the calendar year or other appropriate reporting period.

Where a balance or value threshold is to be determined as of the last day of a calendar year, the relevant balance or value                              must be determined as of the last day of the reporting period that ends with or within that calendar year.                           

Each Member State may allow Reporting Financial Institutions to use service providers to fulfil the reporting and due diligence                              obligations imposed on such Reporting Financial Institutions, as contemplated in domestic law, but these obligations shall                              remain the responsibility of the Reporting Financial Institutions.                           

Each Member State may allow Reporting Financial Institutions to apply the due diligence procedures for New Accounts to Pre-existing                              Accounts, and the due diligence procedures for High Value Accounts to Lower Value Accounts. Where a Member State allows New                              Account due diligence procedures to be used for Pre-existing Accounts, the rules otherwise applicable to Pre-existing Accounts                              continue to apply.                           

#### SECTION IIIU.K.**DUE DILIGENCE FOR PRE-EXISTING INDIVIDUAL ACCOUNTS**

Introduction. The following procedures apply for purposes of identifying Reportable Accounts among Pre-existing Individual                              Accounts.                           

Lower Value Accounts. The following procedures apply with respect to Lower Value Accounts.

Residence Address. If the Reporting Financial Institution has in its records a current residence address for the individual                                       Account Holder based on Documentary Evidence, the Reporting Financial Institution may treat the individual Account Holder                                       as being a resident for tax purposes of the Member State or other jurisdiction in which the address is located for purposes                                       of determining whether such individual Account Holder is a Reportable Person.                                    

Electronic Record Search. If the Reporting Financial Institution does not rely on a current residence address for the individual                                       Account Holder based on Documentary Evidence as set forth in subparagraph B(1), the Reporting Financial Institution must review                                       electronically searchable data maintained by the Reporting Financial Institution for any of the following indicia and apply                                       subparagraphs B(3) to (6):                                    

identification of the Account Holder as a resident of a Member State;

current mailing or residence address (including a post office box) in a Member State;

one or more telephone numbers in a Member State and no telephone number in the Member State of the Reporting Financial Institution;

standing instructions (other than with respect to a Depository Account) to transfer funds to an account maintained in a Member                                                State;                                             

currently effective power of attorney or signatory authority granted to a person with an address in a Member State; or

a “hold mail” instruction or “in-care-of” address in a Member State if the Reporting Financial Institution does not have any                                                other address on file for the Account Holder.                                             

If none of the indicia listed in subparagraph B(2) are discovered in the electronic search, then no further action is required                                       until there is a change in circumstances that results in one or more indicia being associated with the account, or the account                                       becomes a High Value Account.                                    

If any of the indicia listed in subparagraph B(2)(a) through (e) are discovered in the electronic search, or if there is a                                       change in circumstances that results in one or more indicia being associated with the account, then the Reporting Financial                                       Institution must treat the Account Holder as a resident for tax purposes of each Member State for which an indicium is identified,                                       unless it elects to apply subparagraph B(6) and one of the exceptions in that subparagraph applies with respect to that account.                                    

If a “hold mail” instruction or “in-care-of” address is discovered in the electronic search and no other address and none                                       of the other indicia listed in subparagraph B(2)(a) through (e) are identified for the Account Holder, the Reporting Financial                                       Institution must, in the order most appropriate to the circumstances, apply the paper record search described in subparagraph                                       C(2), or seek to obtain from the Account Holder a self-certification or Documentary Evidence to establish the residence(s)                                       for tax purposes of such Account Holder. If the paper search fails to establish an indicium and the attempt to obtain the                                       self-certification or Documentary Evidence is not successful, the Reporting Financial Institution must report the account                                       to the competent authority of its Member State as an undocumented account.                                    

Notwithstanding a finding of indicia under subparagraph B(2), a Reporting Financial Institution is not required to treat an                                       Account Holder as a resident of a Member State if:                                    

the Account Holder information contains a current mailing or residence address in that Member State, one or more telephone                                                numbers in that Member State (and no telephone number in the Member State of the Reporting Financial Institution) or standing                                                instructions (with respect to Financial Accounts other than Depository Accounts) to transfer funds to an account maintained                                                in a Member State, and the Reporting Financial Institution obtains, or has previously reviewed and maintains, a record of:                                             

a self-certification from the Account Holder of the Member State(s) or other jurisdiction(s) of residence of such Account                                                         Holder that does not include that Member State; and                                                      

Documentary Evidence establishing the Account Holder's non-reportable status;

the Account Holder information contains a currently effective power of attorney or signatory authority granted to a person                                                with an address in that Member State, and the Reporting Financial Institution obtains, or has previously reviewed and maintains,                                                a record of:                                             

a self-certification from the Account Holder of the Member State(s) or other jurisdiction(s) of residence of such Account                                                         Holder that does not include that Member State; or                                                      

Documentary Evidence establishing the Account Holder's non-reportable status.

Enhanced Review Procedures for High Value Accounts. The following enhanced review procedures apply with respect to High Value                              Accounts.                           

Electronic Record search. With respect to High Value Accounts, the Reporting Financial Institution must review electronically                                       searchable data maintained by the Reporting Financial Institution for any of the indicia described in subparagraph B(2).                                    

Paper Record Search. If the Reporting Financial Institution's electronically searchable databases include fields for, and                                       capture all of the information described in, subparagraph C(3), then a further paper record search is not required. If the                                       electronic databases do not capture all of this information, then with respect to a High Value Account, the Reporting Financial                                       Institution must also review the current customer master file and, to the extent not contained in the current customer master                                       file, the following documents associated with the account and obtained by the Reporting Financial Institution within the last                                       five years for any of the indicia described in subparagraph B(2):                                    

the most recent Documentary Evidence collected with respect to the account;

the most recent account opening contract or documentation;

the most recent documentation obtained by the Reporting Financial Institution pursuant to AML/KYC Procedures or for other                                                regulatory purposes;                                             

any power of attorney or signature authority forms currently in effect; and

any standing instructions (other than with respect to a Depository Account) to transfer funds currently in effect.

Exception To The Extent Databases Contain Sufficient Information. A Reporting Financial Institution is not required to perform                                       the paper record search described in subparagraph C(2) to the extent the Reporting Financial Institution's electronically                                       searchable information includes the following:                                    

the Account Holder's residence status;

the Account Holder's residence address and mailing address currently on file with the Reporting Financial Institution;

the Account Holder's telephone number(s) currently on file, if any, with the Reporting Financial Institution;

in the case of Financial Accounts other than Depository Accounts, whether there are standing instructions to transfer funds                                                in the account to another account (including an account at another branch of the Reporting Financial Institution or another                                                Financial Institution);                                             

whether there is a current “in-care-of” address or “hold mail” instruction for the Account Holder; and

whether there is any power of attorney or signatory authority for the account.

Relationship Manager Inquiry for Actual Knowledge. In addition to the electronic and paper record searches described in subparagraphs                                       C(1) and (2), the Reporting Financial Institution must treat as a Reportable Account any High Value Account assigned to a                                       relationship manager (including any Financial Accounts aggregated with that High Value Account) if the relationship manager                                       has actual knowledge that the Account Holder is a Reportable Person.                                    

Effect of Finding Indicia.

If none of the indicia listed in subparagraph B(2) are discovered in the enhanced review of High Value Accounts described                                                in paragraph C, and the account is not identified as held by a Reportable Person in subparagraph C(4), then further action                                                is not required until there is a change in circumstances that results in one or more indicia being associated with the account.                                             

If any of the indicia listed in subparagraphs B(2)(a) through (e) are discovered in the enhanced review of High Value Accounts                                                described in paragraph C, or if there is a subsequent change in circumstances that results in one or more indicia being associated                                                with the account, then the Reporting Financial Institution must treat the account as a Reportable Account with respect to                                                each Member State for which an indicium is identified unless it elects to apply subparagraph B(6) and one of the exceptions                                                in that subparagraph applies with respect to that account.                                             

If a “hold mail” instruction or “in-care-of” address is discovered in the enhanced review of High Value Accounts described                                                in paragraph C, and no other address and none of the other indicia listed in subparagraphs B(2)(a) through (e) are identified                                                for the Account Holder, the Reporting Financial Institution must obtain from such Account Holder a self-certification or Documentary                                                Evidence to establish the residence(s) for tax purposes of the Account Holder. If the Reporting Financial Institution cannot                                                obtain such self-certification or Documentary Evidence, it must report the account to the competent authority of its Member                                                State as an undocumented account.                                             

If a Pre-existing Individual Account is not a High Value Account as of 31 December 2015, but becomes a High Value Account                                       as of the last day of a subsequent calendar year, the Reporting Financial Institution must complete the enhanced review procedures                                       described in paragraph C with respect to such account within the calendar year following the year in which the account becomes                                       a High Value Account. If based on this review such account is identified as a Reportable Account, the Reporting Financial                                       Institution must report the required information about such account with respect to the year in which it is identified as                                       a Reportable Account and subsequent years on an annual basis, unless the Account Holder ceases to be a Reportable Person.                                    

Once a Reporting Financial Institution applies the enhanced review procedures described in paragraph C to a High Value Account,                                       the Reporting Financial Institution is not required to reapply such procedures, other than the relationship manager inquiry                                       described in subparagraph C(4), to the same High Value Account in any subsequent year unless the account is undocumented where                                       the Reporting Financial Institution should reapply them annually until such account ceases to be undocumented.                                    

If there is a change of circumstances with respect to a High Value Account that results in one or more indicia described in                                       subparagraph B(2) being associated with the account, then the Reporting Financial Institution must treat the account as a                                       Reportable Account with respect to each Member State for which an indicium is identified unless it elects to apply subparagraph                                       B(6) and one of the exceptions in that subparagraph applies with respect to that account.                                    

A Reporting Financial Institution must implement procedures to ensure that a relationship manager identifies any change in                                       circumstances of an account. For example, if a relationship manager is notified that the Account Holder has a new mailing                                       address in a Member State, the Reporting Financial Institution is required to treat the new address as a change in circumstances                                       and, if it elects to apply subparagraph B(6), is required to obtain the appropriate documentation from the Account Holder.                                    

Review of Pre-existing High Value Individual Accounts must be completed by 31 December 2016. Review of Pre-existing Lower                              Value Individual Accounts must be completed by 31 December 2017.                           

Any Pre-existing Individual Account that has been identified as a Reportable Account under this Section must be treated as                              a Reportable Account in all subsequent years, unless the Account Holder ceases to be a Reportable Person.                           

#### SECTION IVU.K.**DUE DILIGENCE FOR NEW INDIVIDUAL ACCOUNTS**

The following procedures apply for purposes of identifying Reportable Accounts among New Individual Accounts.

With respect to New Individual Accounts, upon account opening, the Reporting Financial Institution must obtain a self-certification,                              which may be part of the account opening documentation, that allows the Reporting Financial Institution to determine the Account                              Holder's residence(s) for tax purposes and confirm the reasonableness of such self-certification based on the information                              obtained by the Reporting Financial Institution in connection with the opening of the account, including any documentation                              collected pursuant to AML/KYC Procedures.                           

If the self-certification establishes that the Account Holder is resident for tax purposes in a Member State, the Reporting                              Financial Institution must treat the account as a Reportable Account and the self-certification must also include the Account                              Holder's TIN with respect to such Member State (subject to paragraph D of Section I) and date of birth.                           

If there is a change of circumstances with respect to a New Individual Account that causes the Reporting Financial Institution                              to know, or have reason to know, that the original self-certification is incorrect or unreliable, the Reporting Financial                              Institution cannot rely on the original self-certification and must obtain a valid self-certification that establishes the                              residence(s) for tax purposes of the Account Holder.                           

#### SECTION VU.K.**DUE DILIGENCE FOR PRE-EXISTING ENTITY ACCOUNTS**

The following procedures apply for purposes of identifying Reportable Accounts among Pre-existing Entity Accounts.

Entity Accounts Not Required to Be Reviewed, Identified or Reported. Unless the Reporting Financial Institution elects otherwise,                              either with respect to all Pre-existing Entity Accounts or, separately, with respect to any clearly identified group of such                              accounts, a Pre-existing Entity Account with an aggregate account balance or value that does not exceed, as of 31 December                              2015, an amount denominated in the domestic currency of each Member State that corresponds to USD 250 000, is not required                              to be reviewed, identified, or reported as a Reportable Account until the aggregate account balance or value exceeds that                              amount as of the last day of any subsequent calendar year.                           

Entity Accounts Subject to Review. A Pre-existing Entity Account that has an aggregate account balance or value that exceeds,                              as of 31 December 2015, an amount denominated in the domestic currency of each Member State that corresponds to USD 250 000,                              and a Pre-existing Entity Account that does not exceed, as of 31 December 2015, that amount but the aggregate account balance                              or value of which exceeds such amount as of the last day of any subsequent calendar year, must be reviewed in accordance with                              the procedures set forth in paragraph D.                           

Entity Accounts With Respect to Which Reporting Is Required. With respect to Pre-existing Entity Accounts described in paragraph                              B, only accounts that are held by one or more Entities that are Reportable Persons, or by Passive NFEs with one or more Controlling                              Persons who are Reportable Persons, shall be treated as Reportable Accounts.                           

Review Procedures for Identifying Entity Accounts With Respect to Which Reporting Is Required. For Pre-existing Entity Accounts                              described in paragraph B, a Reporting Financial Institution must apply the following review procedures to determine whether                              the account is held by one or more Reportable Persons, or by Passive NFEs with one or more Controlling Persons who are Reportable                              Persons:                           

Determine Whether the Entity Is a Reportable Person.

Review information maintained for regulatory or customer relationship purposes (including information collected pursuant to                                                AML/KYC Procedures) to determine whether the information indicates that the Account Holder is resident in a Member State.                                                For this purpose, information indicating that the Account Holder is resident in a Member State includes a place of incorporation                                                or organisation, or an address in a Member State.                                             

If the information indicates that the Account Holder is resident in a Member State, the Reporting Financial Institution must                                                treat the account as a Reportable Account unless it obtains a self-certification from the Account Holder, or reasonably determines                                                based on information in its possession or that is publicly available, that the Account Holder is not a Reportable Person.                                             

Determine Whether the Entity is a Passive NFE with One or More Controlling Persons who are Reportable Persons. With respect                                       to an Account Holder of a Pre-existing Entity Account (including an Entity that is a Reportable Person), the Reporting Financial                                       Institution must determine whether the Account Holder is a Passive NFE with one or more Controlling Persons who are Reportable                                       Persons. If any of the Controlling Persons of a Passive NFE is a Reportable Person, then the account must be treated as a                                       Reportable Account. In making these determinations the Reporting Financial Institution must follow the guidance in subparagraphs                                       D(2)(a) through (c) in the order most appropriate under the circumstances.                                    

Determining whether the Account Holder is a Passive NFE. For purposes of determining whether the Account Holder is a Passive                                                NFE, the Reporting Financial Institution must obtain a self-certification from the Account Holder to establish its status,                                                unless it has information in its possession or that is publicly available, based on which it can reasonably determine that                                                the Account Holder is an Active NFE or a Financial Institution other than an Investment Entity described in subparagraph A(6)(b)                                                of Section VIII that is not a Participating Jurisdiction Financial Institution.                                             

Determining the Controlling Persons of an Account Holder. For the purposes of determining the Controlling Persons of an Account                                                Holder, a Reporting Financial Institution may rely on information collected and maintained pursuant to AML/KYC Procedures.                                             

Determining whether a Controlling Person of a Passive NFE is a Reportable Person. For the purposes of determining whether                                                a Controlling Person of a Passive NFE is a Reportable Person, a Reporting Financial Institution may rely on:                                             

information collected and maintained pursuant to AML/KYC Procedures in the case of a Pre-existing Entity Account held by one                                                         or more NFEs with an aggregate account balance or value that does not exceed an amount denominated in the domestic currency                                                         of each Member State that corresponds to USD 1 000 000; or                                                      

a self-certification from the Account Holder or such Controlling Person of the Member State(s) or other jurisdiction(s) in                                                         which the controlling person is resident for tax purposes.                                                      

Timing of Review and Additional Procedures Applicable to Pre-existing Entity Accounts

Review of Pre-existing Entity Accounts with an aggregate account balance or value that exceeds, as of 31 December 2015, an                                       amount denominated in the domestic currency of each Member State that corresponds to USD 250 000, must be completed by 31                                       December 2017.                                    

Review of Pre-existing Entity Accounts with an aggregate account balance or value that does not exceed, as of 31 December                                       2015, an amount denominated in the domestic currency of each Member State that corresponds to USD 250 000 but exceeds that                                       amount as of 31 December of a subsequent year, must be completed within the calendar year following the year in which the                                       aggregate account balance or value exceeds such amount.                                    

If there is a change of circumstances with respect to a Pre-existing Entity Account that causes the Reporting Financial Institution                                       to know, or have reason to know, that the self-certification or other documentation associated with an account is incorrect                                       or unreliable, the Reporting Financial Institution must re-determine the status of the account in accordance with the procedures                                       set forth in paragraph D.                                    

#### SECTION VIU.K.**DUE DILIGENCE FOR NEW ENTITY ACCOUNTS**

The following procedures apply for purposes of identifying Reportable Accounts among New Entity Accounts.

Review Procedures for Identifying Entity Accounts With Respect to Which Reporting Is Required. For New Entity Accounts, a                     Reporting Financial Institution must apply the following review procedures to determine whether the account is held by one                     or more Reportable Persons, or by Passive NFEs with one or more Controlling Persons who are Reportable Persons:                  

Determine Whether the Entity Is a Reportable Person.

Obtain a self-certification, which may be part of the account opening documentation, that allows the Reporting Financial Institution                                       to determine the Account Holder's residence(s) for tax purposes and confirm the reasonableness of such self-certification                                       based on the information obtained by the Reporting Financial Institution in connection with the opening of the account, including                                       any documentation collected pursuant to AML/KYC Procedures. If the Entity certifies that it has no residence for tax purposes,                                       the Reporting Financial Institution may rely on the address of the principal office of the Entity to determine the residence                                       of the Account Holder.                                    

If the self-certification indicates that the Account Holder is resident in a Member State, the Reporting Financial Institution                                       must treat the account as a Reportable Account, unless it reasonably determines based on information in its possession or                                       that is publicly available that the Account Holder is not a Reportable Person with respect to such Member State.                                    

Determine Whether the Entity is a Passive NFE with One or More Controlling Persons Who Are Reportable Persons. With respect                              to an Account Holder of a New Entity Account (including an Entity that is a Reportable Person), the Reporting Financial Institution                              must determine whether the Account Holder is a Passive NFE with one or more Controlling Persons who are Reportable Persons.                              If any of the Controlling Persons of a Passive NFE is a Reportable Person, then the account must be treated as a Reportable                              Account. In making these determinations the Reporting Financial Institution must follow the guidance in subparagraphs A(2)(a)                              through (c) in the order most appropriate under the circumstances.                           

Determining whether the Account Holder is a Passive NFE. For purposes of determining whether the Account Holder is a Passive                                       NFE, the Reporting Financial Institution must rely on a self-certification from the Account Holder to establish its status,                                       unless it has information in its possession or that is publicly available, based on which it can reasonably determine that                                       the Account Holder is an Active NFE or a Financial Institution other than an Investment Entity described in subparagraph A(6)(b)                                       of Section VIII that is not a Participating Jurisdiction Financial Institution.                                    

Determining the Controlling Persons of an Account Holder. For purposes of determining the Controlling Persons of an Account                                       Holder, a Reporting Financial Institution may rely on information collected and maintained pursuant to AML/KYC Procedures.                                    

Determining whether a Controlling Person of a Passive NFE is a Reportable Person. For purposes of determining whether a controlling                                       person of a Passive NFE is a Reportable Person, a Reporting Financial Institution may rely on a self-certification from the                                       Account Holder or such Controlling Person.                                    

#### SECTION VIIU.K.**SPECIAL DUE DILIGENCE RULES**

The following additional rules apply in implementing the due diligence procedures described above:

Reliance on Self-Certifications and Documentary Evidence. A Reporting Financial Institution may not rely on a self-certification                              or Documentary Evidence if the Reporting Financial Institution knows or has reason to know that the self-certification or                              Documentary Evidence is incorrect or unreliable.                           

Alternative Procedures for Financial Accounts held by Individual Beneficiaries of a Cash Value Insurance Contract or an Annuity                              Contract and for a Group Cash Value Insurance Contract or Group Annuity Contract. A Reporting Financial Institution may presume                              that an individual beneficiary (other than the owner) of a Cash Value Insurance Contract or an Annuity Contract receiving                              a death benefit is not a Reportable Person and may treat such Financial Account as other than a Reportable Account unless                              the Reporting Financial Institution has actual knowledge, or reason to know, that the beneficiary is a Reportable Person.                              A Reporting Financial Institution has reason to know that a beneficiary of a Cash Value Insurance Contract or an Annuity Contract                              is a Reportable Person if the information collected by the Reporting Financial Institution and associated with the beneficiary                              contains indicia as described in paragraph B of Section III. If a Reporting Financial Institution has actual knowledge, or                              reason to know, that the beneficiary is a Reportable Person, the Reporting Financial Institution must follow the procedures                              in paragraph B of Section III.                           

A Reporting Financial Institution may treat a Financial Account that is a member's interest in a Group Cash Value Insurance                              Contract or Group Annuity Contract as a Financial Account that is not a Reportable Account until the date on which an amount                              is payable to the employee/certificate holder or beneficiary, if the Financial Account that is a member's interest in a Group                              Cash Value Insurance Contract or Group Annuity Contract meets the following requirements:                           

the Group Cash Value Insurance Contract or Group Annuity Contract is issued to an employer and covers 25 or more employees/certificate                                       holders;                                    

the employee/certificate holders are entitled to receive any contract value related to their interests and to name beneficiaries                                       for the benefit payable upon the employee's death; and                                    

the aggregate amount payable to any employee/certificate holder or beneficiary does not exceed an amount denominated in the                                       domestic currency of each Member State that corresponds to USD 1 000 000.                                    

The term “Group Cash Value Insurance Contract” means a Cash Value Insurance Contract that (i) provides coverage on individuals                              who are affiliated through an employer, trade association, labour union, or other association or group; and (ii) charges a                              premium for each member of the group (or member of a class within the group) that is determined without regard to the individual                              health characteristics other than age, gender, and smoking habits of the member (or class of members) of the group.                           

The term “Group Annuity Contract” means an Annuity Contract under which the obligees are individuals who are affiliated through                              an employer, trade association, labour union, or other association or group.                           

Account Balance Aggregation and Currency Rules

Aggregation of Individual Accounts. For purposes of determining the aggregate balance or value of Financial Accounts held                                       by an individual, a Reporting Financial Institution is required to aggregate all Financial Accounts maintained by the Reporting                                       Financial Institution, or by a Related Entity, but only to the extent that the Reporting Financial Institution's computerised                                       systems link the Financial Accounts by reference to a data element such as client number or TIN, and allow account balances                                       or values to be aggregated. Each holder of a jointly held Financial Account shall be attributed the entire balance or value                                       of the jointly held Financial Account for purposes of applying the aggregation requirements described in this subparagraph.                                    

Aggregation of Entity Accounts. For purposes of determining the aggregate balance or value of Financial Accounts held by an                                       Entity, a Reporting Financial Institution is required to take into account all Financial Accounts that are maintained by the                                       Reporting Financial Institution, or by a Related Entity, but only to the extent that the Reporting Financial Institution's                                       computerised systems link the Financial Accounts by reference to a data element such as client number or TIN, and allow account                                       balances or values to be aggregated. Each holder of a jointly held Financial Account shall be attributed the entire balance                                       or value of the jointly held Financial Account for purposes of applying the aggregation requirements described in this subparagraph.                                    

Special Aggregation Rule Applicable to Relationship Managers. For purposes of determining the aggregate balance or value of                                       Financial Accounts held by a person to determine whether a financial account is a High Value Account, a Reporting Financial                                       Institution is also required, in the case of any Financial Accounts that a relationship manager knows, or has reason to know,                                       are directly or indirectly owned, controlled, or established (other than in a fiduciary capacity) by the same person, to aggregate                                       all such accounts.                                    

Amounts Read to Include Equivalent in Other Currencies. All amounts denominated in the domestic currency of each Member State                                       shall be read to include equivalent amounts in other currencies, as determined by domestic law.                                    

#### SECTION VIIIU.K.**DEFINED TERMS**

The following terms have the meanings set forth below:

##### A.Reporting Financial InstitutionU.K.

The term “Reporting Financial Institution” means any Member State Financial Institution that is not a Non-Reporting Financial                              Institution. The term “Member State Financial Institution” means: (i) any Financial Institution that is resident in a Member                              State, but excludes any branch of that Financial Institution that is located outside that Member State; and (ii) any branch                              of a Financial Institution that is not resident in a Member State, if that branch is located in that Member State.                           

The term “Participating Jurisdiction Financial Institution” means (i) any Financial Institution that is resident in a Participating                              Jurisdiction, but excludes any branch of that Financial Institution that is located outside such Participating Jurisdiction;                              and (ii) any branch of a Financial Institution that is not resident in a Participating Jurisdiction, if that branch is located                              in such Participating Jurisdiction.                           

The term “Financial Institution” means a Custodial Institution, a Depository Institution, an Investment Entity, or a Specified                              Insurance Company.                           

The term “Custodial Institution” means any Entity that holds, as a substantial portion of its business, Financial Assets for                              the account of others. An Entity holds Financial Assets for the account of others as a substantial portion of its business                              if 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.                           

The term “Depository Institution” means any Entity that accepts deposits in the ordinary course of a banking or similar business.

The term “Investment Entity” means any Entity:

which 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;

or

the gross income of which is primarily attributable to investing, reinvesting, or trading in Financial Assets, if the Entity                                       is managed by another Entity that is a Depository Institution, a Custodial Institution, a Specified Insurance Company, or                                       an Investment Entity described in subparagraph A(6)(a).                                    

An Entity is treated as primarily conducting as a business one or more of the activities described in subparagraph A(6)(a),                              or an Entity's gross income is primarily attributable to investing, reinvesting, or trading in Financial Assets for the purposes                              of subparagraph A(6)(b), if the Entity's gross income attributable to the relevant activities equals or exceeds 50 % of the                              Entity's gross income during the shorter of: (i) the three-year period ending on 31 December of the year preceding the year                              in which the determination is made; or (ii) the period during which the Entity has been in existence. The term “Investment                              Entity” does not include an Entity that is an Active NFE because that Entity meets any of the criteria in subparagraphs D(8)(d)                              through (g).                           

This paragraph shall be interpreted in a manner consistent with similar language set forth in the definition of “financial                              institution” in the Financial Action Task Force Recommendations.                           

The term “Financial Asset” includes a security (for example, a share of stock in a corporation; partnership or beneficial                              ownership interest in a widely held or publicly traded partnership or trust; note, bond, debenture, or other evidence of indebtedness),                              partnership interest, commodity, swap (for example, interest rate swaps, currency swaps, basis swaps, interest rate caps,                              interest rate floors, commodity swaps, equity swaps, equity index swaps, and similar agreements), Insurance Contract or Annuity                              Contract, or any interest (including a futures or forward contract or option) in a security, partnership interest, commodity,                              swap, Insurance Contract, or Annuity Contract. The term “Financial Asset” does not include a non-debt, direct interest in                              real property.                           

The term “Specified Insurance Company” means any Entity that is an insurance company (or the holding company of an insurance                              company) which issues, or is obligated to make payments with respect to, a Cash Value Insurance Contract or an Annuity Contract.                           

##### B.Non-Reporting Financial InstitutionU.K.

The term “Non-Reporting Financial Institution” means any Financial Institution which is:

a Governmental Entity, International Organisation or Central Bank, other than with respect to a payment that is derived from                                       an obligation held in connection with a commercial financial activity of a type engaged in by a Specified Insurance Company,                                       Custodial Institution, or Depository Institution;                                    

a Broad Participation Retirement Fund; a Narrow Participation Retirement Fund; a Pension Fund of a Governmental Entity, International                                       Organisation or Central Bank; or a Qualified Credit Card Issuer;                                    

any other Entity that presents a low risk of being used to evade tax, has substantially similar characteristics to any of                                       the Entities described in subparagraphs B(1)(a) and (b), and is included in the list of Non-Reporting Financial Institutions                                       referred to in Article 8(7a) of this Directive, provided that the status of such Entity as a Non-Reporting Financial Institution                                       does not frustrate the purposes of this Directive;                                    

an Exempt Collective Investment Vehicle; or

a trust to the extent that the trustee of the trust is a Reporting Financial Institution and reports all information required                                       to be reported pursuant to Section I with respect to all Reportable Accounts of the trust.                                    

The term “Governmental Entity” means the government of a Member State or other jurisdiction, any political subdivision of                              a Member State or other jurisdiction (which, for the avoidance of doubt, includes a state, province, county, or municipality),                              or any wholly owned agency or instrumentality of a Member State or other jurisdiction or of any one or more of the foregoing                              (each, a “Governmental Entity”). This category is comprised of the integral parts, controlled entities, and political subdivisions                              of a Member State or other jurisdiction.                           

An “integral part” of a Member State or other jurisdiction means any person, organisation, agency, bureau, fund, instrumentality,                                       or other body, however designated, that constitutes a governing authority of a Member State or other jurisdiction. The net                                       earnings of the governing authority must be credited to its own account or to other accounts of the Member State or other                                       jurisdiction, with no portion inuring to the benefit of any private person. An integral part does not include any individual                                       who is a sovereign, official, or administrator acting in a private or personal capacity.                                    

A “controlled entity” means an Entity which is separate in form from the Member State or other jurisdiction or which otherwise                                       constitutes a separate juridical entity, provided that:                                    

the Entity is wholly owned and controlled by one or more Governmental Entities directly or through one or more controlled                                                entities;                                             

the Entity's net earnings are credited to its own account or to the accounts of one or more Governmental Entities, with no                                                portion of its income inuring to the benefit of any private person; and                                             

the Entity's assets vest in one or more Governmental Entities upon dissolution.

Income does not inure to the benefit of private persons if such persons are the intended beneficiaries of a governmental programme,                                       and the programme activities are performed for the general public with respect to the common welfare or relate to the administration                                       of some phase of government. Notwithstanding the foregoing, however, income is considered to inure to the benefit of private                                       persons if the income is derived from the use of a Governmental Entity to conduct a commercial business, such as a commercial                                       banking business, that provides financial services to private persons.                                    

The term “International Organisation” means any international organisation or wholly owned agency or instrumentality thereof.                              This category includes any intergovernmental organisation (including a supranational organisation) (i) that is comprised primarily                              of governments; (ii) that has in effect a headquarters or substantially similar agreement with the Member State; and (iii)                              the income of which does not inure to the benefit of private persons.                           

The term “Central Bank” means an institution that is by law or government sanction the principal authority, other than the                              government of the Member State itself, issuing instruments intended to circulate as currency. Such an institution may include                              an instrumentality that is separate from the government of the Member State, whether or not owned in whole or in part by the                              Member State.                           

The term “Broad Participation Retirement Fund” means a fund established to provide retirement, disability, or death benefits,                              or any combination thereof, to beneficiaries who are current or former employees (or persons designated by such employees)                              of one or more employers in consideration for services rendered, provided that the fund:                           

does not have a single beneficiary with a right to more than 5 % of the fund's assets;

is subject to government regulation and provides information reporting to the tax authorities; and

satisfies at least one of the following requirements:

the fund is generally exempt from tax on investment income, or taxation of such income is deferred or taxed at a reduced rate,                                                due to its status as a retirement or pension plan;                                             

the fund receives at least 50 % of its total contributions (other than transfers of assets from other plans described in subparagraphs                                                B(5) through (7) or from retirement and pension accounts described in subparagraph C(17)(a)) from the sponsoring employers;                                             

distributions or withdrawals from the fund are allowed only upon the occurrence of specified events related to retirement,                                                disability, or death (except rollover distributions to other retirement funds described in subparagraphs B(5) through (7)                                                or retirement and pension accounts described in subparagraph C(17)(a)), or penalties apply to distributions or withdrawals                                                made before such specified events; or                                             

contributions (other than certain permitted make-up contributions) by employees to the fund are limited by reference to earned                                                income of the employee or may not exceed, annually, an amount denominated in the domestic currency of each Member State that                                                corresponds to USD 50 000, applying the rules set forth in paragraph C of Section VII for account aggregation and currency                                                translation.                                             

The term “Narrow Participation Retirement Fund” means a fund established to provide retirement, disability, or death benefits                              to beneficiaries who are current or former employees (or persons designated by such employees) of one or more employers in                              consideration for services rendered, provided that:                           

the fund has fewer than 50 participants;

the fund is sponsored by one or more employers that are not Investment Entities or Passive NFEs;

the employee and employer contributions to the fund (other than transfers of assets from retirement and pension accounts described                                       in subparagraph C(17)(a)) are limited by reference to earned income and compensation of the employee, respectively;                                    

participants that are not residents of the Member State in which the fund is established are not entitled to more than 20                                       % of the fund's assets; and                                    

the fund is subject to government regulation and provides information reporting to the tax authorities.

The term “Pension Fund of a Governmental Entity, International Organisation or Central Bank” means a fund established by a                              Governmental Entity, International Organisation or Central Bank to provide retirement, disability, or death benefits to beneficiaries                              or participants who are current or former employees (or persons designated by such employees), or who are not current or former                              employees, if the benefits provided to such beneficiaries or participants are in consideration of personal services performed                              for the Governmental Entity, International Organisation or Central Bank.                           

The term “Qualified Credit Card Issuer” means a Financial Institution satisfying the following requirements:

the Financial Institution is a Financial Institution solely because it is an issuer of credit cards that accepts deposits                                       only when a customer makes a payment in excess of a balance due with respect to the card and the overpayment is not immediately                                       returned to the customer; and                                    

beginning on or before 1 January 2016, the Financial Institution implements policies and procedures either to prevent a customer                                       from making an overpayment in excess of an amount denominated in the domestic currency of each Member State that corresponds                                       to USD 50 000, or to ensure that any customer overpayment in excess of that amount is refunded to the customer within 60 days,                                       in each case applying the rules set forth in paragraph C of Section VII for account aggregation and currency translation.                                       For this purpose, a customer overpayment does not refer to credit balances to the extent of disputed charges but does include                                       credit balances resulting from merchandise returns.                                    

The term “Exempt Collective Investment Vehicle” means an Investment Entity that is regulated as a collective investment vehicle,                              provided that all of the interests in the collective investment vehicle are held by or through individuals or Entities that                              are not Reportable Persons, except a Passive NFE with Controlling Persons who are Reportable Persons.                           

An Investment Entity that is regulated as a collective investment vehicle does not fail to qualify under subparagraph B(9)                              as an Exempt Collective Investment Vehicle, solely because the collective investment vehicle has issued physical shares in                              bearer form, provided that:                           

the collective investment vehicle has not issued, and does not issue, any physical shares in bearer form after 31 December                                       2015;                                    

the collective investment vehicle retires all such shares upon surrender;

the collective investment vehicle performs the due diligence procedures set forth in Sections II through VII and reports any                                       information required to be reported with respect to any such shares when such shares are presented for redemption or other                                       payment; and                                    

the collective investment vehicle has in place policies and procedures to ensure that such shares are redeemed or immobilised                                       as soon as possible, and in any event prior to 1 January 2018.                                    

##### C.Financial AccountU.K.

The term “Financial Account” means an account maintained by a Financial Institution, and includes a Depository Account, a                              Custodial Account and:                           

in the case of an Investment Entity, any equity or debt interest in the Financial Institution. Notwithstanding the foregoing,                                       the term “Financial Account” does not include any equity or debt interest in an Entity that is an Investment Entity solely                                       because it (i) renders investment advice to, and acts on behalf of; or (ii) manages portfolios for, and acts on behalf of,                                       a customer for the purpose of investing, managing, or administering Financial Assets deposited in the name of the customer                                       with a Financial Institution other than such Entity;                                    

in the case of a Financial Institution not described in subparagraph C(1)(a), any equity or debt interest in the Financial                                       Institution, if the class of interests was established with the purpose of avoiding reporting in accordance with Section I;                                       and                                    

any Cash Value Insurance Contract and any Annuity Contract issued or maintained by a Financial Institution, other than a non-investment-linked,                                       non-transferable immediate life annuity that is issued to an individual and monetises a pension or disability benefit provided                                       under an account that is an Excluded Account.                                    

The term “Financial Account” does not include any account that is an Excluded Account.

The term “Depository Account” includes any commercial, checking, savings, time, or thrift account, or an account that is evidenced                              by a certificate of deposit, thrift certificate, investment certificate, certificate of indebtedness, or other similar instrument                              maintained by a Financial Institution in the ordinary course of a banking or similar business. A Depository Account also includes                              an amount held by an insurance company pursuant to a guaranteed investment contract or similar agreement to pay or credit                              interest thereon.                           

The term “Custodial Account” means an account (other than an Insurance Contract or Annuity Contract) which holds one or more                              Financial Assets for the benefit of another person.                           

The term “Equity Interest” means, in the case of a partnership that is a Financial Institution, either a capital or profits                              interest in the partnership. In the case of a trust that is a Financial Institution, an Equity Interest is considered to be                              held by any person treated as a settlor or beneficiary of all or a portion of the trust, or any other natural person exercising                              ultimate effective control over the trust. A Reportable Person will be treated as being a beneficiary of a trust if such Reportable                              Person has the right to receive directly or indirectly (for example, through a nominee) a mandatory distribution or may receive,                              directly or indirectly, a discretionary distribution from the trust.                           

The term “Insurance Contract” means a contract (other than an Annuity Contract) under which the issuer agrees to pay an amount                              upon the occurrence of a specified contingency involving mortality, morbidity, accident, liability, or property risk.                           

The term “Annuity Contract” means a contract under which the issuer agrees to make payments for a period of time determined                              in whole or in part by reference to the life expectancy of one or more individuals. The term also includes a contract that                              is considered to be an Annuity Contract in accordance with the law, regulation, or practice of the Member State or other jurisdiction                              in which the contract was issued, and under which the issuer agrees to make payments for a term of years.                           

The term “Cash Value Insurance Contract” means an Insurance Contract (other than an indemnity reinsurance contract between                              two insurance companies) that has a Cash Value.                           

The term “Cash Value” means the greater of (i) the amount that the policyholder is entitled to receive upon surrender or termination                              of the contract (determined without reduction for any surrender charge or policy loan); and (ii) the amount the policyholder                              can borrow under or with regard to the contract. Notwithstanding the foregoing, the term “Cash Value” does not include an                              amount payable under an Insurance Contract:                           

solely by reason of the death of an individual insured under a life insurance contract;

as a personal injury or sickness benefit or other benefit providing indemnification of an economic loss incurred upon the                                       occurrence of the event insured against;                                    

as a refund of a previously paid premium (less cost of insurance charges whether or not actually imposed) under an Insurance                                       Contract (other than an investment-linked life insurance or annuity contract) due to cancellation or termination of the contract,                                       decrease in risk exposure during the effective period of the contract, or arising from the correction of a posting or similar                                       error with regard to the premium for the contract;                                    

as a policyholder dividend (other than a termination dividend) provided that the dividend relates to an Insurance Contract                                       under which the only benefits payable are described in subparagraph C(8)(b); or                                    

as a return of an advance premium or premium deposit for an Insurance Contract for which the premium is payable at least annually                                       if the amount of the advance premium or premium deposit does not exceed the next annual premium that will be payable under                                       the contract.                                    

The term “Pre-existing Account” means:

a Financial Account maintained by a Reporting Financial Institution as of 31 December 2015;

any Financial Account of an Account Holder, regardless of the date such Financial Account was opened, if:

the Account Holder also holds with the Reporting Financial Institution (or with a Related Entity within the same Member State                                                as the Reporting Financial Institution) a Financial Account that is a Pre-existing Account under subparagraph C(9)(a);                                             

the Reporting Financial Institution (and, as applicable, the Related Entity within the same Member State as the Reporting                                                Financial Institution) treats both of the aforementioned Financial Accounts, and any other Financial Accounts of the Account                                                Holder that are treated as Pre-existing Accounts under point (b), as a single Financial Account for purposes of satisfying                                                the standards of knowledge requirements set forth in paragraph A of Section VII, and for purposes of determining the balance                                                or value of any of the Financial Accounts when applying any of the account thresholds;                                             

with respect to a Financial Account that is subject to AML/KYC Procedures, the Reporting Financial Institution is permitted                                                to satisfy such AML/KYC Procedures for the Financial Account by relying upon the AML/KYC Procedures performed for the Pre-existing                                                Account described in subparagraph C(9)(a); and                                             

the opening of the Financial Account does not require the provision of new, additional or amended customer information by                                                the Account Holder other than for the purposes of this Directive.                                             

The term “New Account” means a Financial Account maintained by a Reporting Financial Institution opened on or after 1 January                              2016 unless it is treated as a Pre-existing Account under subparagraph C(9)(b).                           

The term “Pre-existing Individual Account” means a Pre-existing Account held by one or more individuals.

The term “New Individual Account” means a New Account held by one or more individuals.

The term “Pre-existing Entity Account” means a Pre-existing Account held by one or more Entities.

The term “Lower Value Account” means a Pre-existing Individual Account with an aggregate balance or value as of 31 December                              2015 that does not exceed an amount denominated in the domestic currency of each Member State that corresponds to USD 1 000                              000.                           

The term “High Value Account” means a Pre-existing Individual Account with an aggregate balance or value that exceeds, as                              of 31 December 2015, or 31 December of any subsequent year, an amount denominated in the domestic currency of each Member                              State that corresponds to USD 1 000 000.                           

The term “New Entity Account” means a New Account held by one or more Entities.

The term “Excluded Account” means any of the following accounts:

a retirement or pension account that satisfies the following requirements:

the account is subject to regulation as a personal retirement account or is part of a registered or regulated retirement or                                                pension plan for the provision of retirement or pension benefits (including disability or death benefits);                                             

the account is tax-favoured (i.e., contributions to the account that would otherwise be subject to tax are deductible or excluded                                                from the gross income of the Account Holder or taxed at a reduced rate, or taxation of investment income from the account                                                is deferred or taxed at a reduced rate);                                             

information reporting is required to the tax authorities with respect to the account;

withdrawals are conditioned on reaching a specified retirement age, disability, or death, or penalties apply to withdrawals                                                made before such specified events; and                                             

either (i) annual contributions are limited to an amount denominated in the domestic currency of each Member State that corresponds                                                to USD 50 000 or less; or (ii) there is a maximum lifetime contribution limit to the account of an amount denominated in the                                                domestic currency of each Member State that corresponds to USD 1 000 000 or less, in each case applying the rules set forth                                                in paragraph C of Section VII for account aggregation and currency translation.                                             

A Financial Account that otherwise satisfies the requirement of subparagraph C(17)(a)(v) will not fail to satisfy such requirement                                       solely because such Financial Account may receive assets or funds transferred from one or more Financial Accounts that meet                                       the requirements of subparagraph C(17)(a) or (b) or from one or more retirement or pension funds that meet the requirements                                       of any of subparagraphs B(5) through (7);                                    

an account that satisfies the following requirements:

the account is subject to regulation as an investment vehicle for purposes other than for retirement and is regularly traded                                                on an established securities market, or the account is subject to regulation as a savings vehicle for purposes other than                                                for retirement;                                             

the account is tax-favoured (i.e., contributions to the account that would otherwise be subject to tax are deductible or excluded                                                from the gross income of the Account Holder or taxed at a reduced rate, or taxation of investment income from the account                                                is deferred or taxed at a reduced rate);                                             

withdrawals are conditioned on meeting specific criteria related to the purpose of the investment or savings account (for                                                example, the provision of educational or medical benefits), or penalties apply to withdrawals made before such criteria are                                                met; and                                             

annual contributions are limited to an amount denominated in the domestic currency of each Member State that corresponds to                                                USD 50 000 or less, applying the rules set forth in paragraph C of Section VII for account aggregation and currency translation.                                             

A Financial Account that otherwise satisfies the requirement of subparagraph C(17)(b)(iv) will not fail to satisfy such requirement                                       solely because such Financial Account may receive assets or funds transferred from one or more Financial Accounts that meet                                       the requirements of subparagraph C(17)(a) or (b) or from one or more retirement or pension funds that meet the requirements                                       of any of subparagraphs B(5) through (7);                                    

a life insurance contract with a coverage period that will end before the insured individual attains age 90, provided that                                       the contract satisfies the following requirements:                                    

periodic premiums, which do not decrease over time, are payable at least annually during the period the contract is in existence                                                or until the insured attains age 90, whichever is shorter;                                             

the contract has no contract value that any person can access (by withdrawal, loan, or otherwise) without terminating the                                                contract;                                             

the amount (other than a death benefit) payable upon cancellation or termination of the contract cannot exceed the aggregate                                                premiums paid for the contract, less the sum of mortality, morbidity, and expense charges (whether or not actually imposed)                                                for the period or periods of the contract's existence and any amounts paid prior to the cancellation or termination of the                                                contract; and                                             

the contract is not held by a transferee for value;

an account that is held solely by an estate if the documentation for such account includes a copy of the deceased's will or                                       death certificate;                                    

an account established in connection with any of the following:

a court order or judgment.

a sale, exchange, or lease of real or personal property, provided that the account satisfies the following requirements:
                            -  the account is funded solely with a down payment, earnest money, deposit in an amount appropriate to secure an obligation                                                      directly related to the transaction, or a similar payment, or is funded with a Financial Asset that is deposited in the account                                                      in connection with the sale, exchange, or lease of the property,                                                    
                            -  the account is established and used solely to secure the obligation of the purchaser to pay the purchase price for the property,                                                      the seller to pay any contingent liability, or the lessor or lessee to pay for any damages relating to the leased property                                                      as agreed under the lease,                                                    
                            -  the assets of the account, including the income earned thereon, will be paid or otherwise distributed for the benefit of the                                                      purchaser, seller, lessor, or lessee (including to satisfy such person's obligation) when the property is sold, exchanged,                                                      or surrendered, or the lease terminates,                                                    
                            -  the account is not a margin or similar account established in connection with a sale or exchange of a Financial Asset, and 
                            -  the account is not associated with an account described in subparagraph C(17)(f); 

an obligation of a Financial Institution servicing a loan secured by real property to set aside a portion of a payment solely                                                to facilitate the payment of taxes or insurance related to the real property at a later time;                                             

an obligation of a Financial Institution solely to facilitate the payment of taxes at a later time;

a Depository Account that satisfies the following requirements:

the account exists solely because a customer makes a payment in excess of a balance due with respect to a credit card or other                                                revolving credit facility and the overpayment is not immediately returned to the customer; and                                             

beginning on or before 1 January 2016, the Financial Institution implements policies and procedures either to prevent a customer                                                from making an overpayment in excess of an amount denominated in the domestic currency of each Member State that corresponds                                                to USD 50 000, or to ensure that any customer overpayment in excess of that amount is refunded to the customer within 60 days,                                                in each case applying the rules set forth in paragraph C of Section VII for currency translation. For this purpose, a customer                                                overpayment does not refer to credit balances to the extent of disputed charges but does include credit balances resulting                                                from merchandise returns;                                             

any other account that presents a low risk of being used to evade tax, has substantially similar characteristics to any of                                       the accounts described in subparagraphs C(17)(a) through (f), and is included in the list of Excluded Accounts referred to                                       in Article 8(7a) of this Directive, provided that the status of such account as an Excluded Account does not frustrate the                                       purposes of this Directive.                                    

##### D.Reportable AccountU.K.

The term “Reportable Account” means a Financial Account that is maintained by a Member State Reporting Financial Institution                              and is held by one or more Reportable Persons or by a Passive NFE with one or more Controlling Persons that is a Reportable                              Person, provided it has been identified as such pursuant to the due diligence procedures described in Sections II through                              VII.                           

The term “Reportable Person” means a Member State Person other than: (i) a corporation the stock of which is regularly traded                              on one or more established securities markets; (ii) any corporation that is a Related Entity of a corporation described in                              clause (i); (iii) a Governmental Entity; (iv) an International Organisation; (v) a Central Bank; or (vi) a Financial Institution.                           

The term “Member State Person” with regard to each Member State means an individual or Entity that is resident in any other                              Member State under the tax laws of that other Member State, or an estate of a decedent that was a resident of any other Member                              State. For this purpose, an Entity such as a partnership, limited liability partnership or similar legal arrangement, which                              has no residence for tax purposes shall be treated as resident in the jurisdiction in which its place of effective management                              is situated.                           

The term “Participating Jurisdiction” with regard to each Member State means:

any other Member State;

any other jurisdiction (i) with which the Member State concerned has an agreement in place pursuant to which that jurisdiction                                       will provide the information specified in Section I; and (ii) which is identified in a list published by that Member State                                       and notified to the European Commission;                                    

any other jurisdiction (i) with which the Union has an agreement in place pursuant to which that jurisdiction will provide                                       the information specified in Section I; and (ii) which is identified in a list published by the European Commission.                                    

The term “Controlling Persons” means the natural persons who exercise control over an Entity. In the case of a trust, that                              term means the settlor(s), the trustee(s), the protector(s) (if any), the beneficiary(ies) or class(es) of beneficiaries,                              and any other natural person(s) exercising ultimate effective control over the trust, and in the case of a legal arrangement                              other than a trust, such term means persons in equivalent or similar positions. The term “Controlling Persons” must be interpreted                              in a manner consistent with the Financial Action Task Force Recommendations.                           

The term “NFE” means any Entity that is not a Financial Institution.

The term “Passive NFE” means any: (i) NFE that is not an Active NFE; or (ii) an Investment Entity described in subparagraph                              A(6)(b) that is not a Participating Jurisdiction Financial Institution.                           

The term “Active NFE” means any NFE that meets any of the following criteria:

less than 50 % of the NFE's gross income for the preceding calendar year or other appropriate reporting period is passive                                       income and less than 50 % of the assets held by the NFE during the preceding calendar year or other appropriate reporting                                       period are assets that produce or are held for the production of passive income;                                    

the stock of the NFE is regularly traded on an established securities market or the NFE is a Related Entity of an Entity the                                       stock of which is regularly traded on an established securities market;                                    

the NFE is a Governmental Entity, an International Organisation, a Central Bank, or an Entity wholly owned by one or more                                       of the foregoing;                                    

substantially all of the activities of the NFE consist of holding (in whole or in part) the outstanding stock of, or providing                                       financing and services to, one or more subsidiaries that engage in trades or businesses other than the business of a Financial                                       Institution, except that an Entity does not qualify for this status if the Entity functions (or holds itself out) as an investment                                       fund, such as a private equity fund, venture capital fund, leveraged buyout fund, or any investment vehicle whose purpose                                       is to acquire or fund companies and then hold interests in those companies as capital assets for investment purposes;                                    

the NFE is not yet operating a business and has no prior operating history, 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;                                    

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;                                    

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                                    

the NFE meets all of the following requirements:

it is established and operated in its Member State or other jurisdiction of residence exclusively for religious, charitable,                                                scientific, artistic, cultural, athletic, or educational purposes; or it is established and operated in its Member State or                                                other 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;                                             

it is exempt from income tax in its Member State or other jurisdiction of residence;

it has no shareholders or members who have a proprietary or beneficial interest in its income or assets;

the applicable laws of the NFE's Member State or other 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                                             

the applicable laws of the NFE's Member State or other 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 Member State or other jurisdiction of residence or any political subdivision                                                thereof.                                             

##### E.MiscellaneousU.K.

The term “Account Holder” means the person listed or identified as the holder of a Financial Account by the Financial Institution                              that maintains the account. A person, other than a Financial Institution, holding a Financial Account for the benefit or account                              of another person as agent, custodian, nominee, signatory, investment advisor, or intermediary, is not treated as holding                              the account for purposes of this Directive, and such other person is treated as holding the account. In the case of a Cash                              Value Insurance Contract or an Annuity Contract, the Account Holder is any person entitled to access the Cash Value or change                              the beneficiary of the contract. If no person can access the Cash Value or change the beneficiary, the Account Holder is any                              person named as the owner in the contract and any person with a vested entitlement to payment under the terms of the contract.                              Upon the maturity of a Cash Value Insurance Contract or an Annuity Contract, each person entitled to receive a payment under                              the contract is treated as an Account Holder.                           

The term “AML/KYC Procedures” means the customer due diligence procedures of a Reporting Financial Institution pursuant to                              the anti-money laundering or similar requirements to which such Reporting Financial Institution is subject.                           

The term “Entity” means a legal person or a legal arrangement, such as a corporation, partnership, trust, or foundation.

An Entity is a “Related Entity” of another Entity if (i) either Entity controls the other Entity; (ii) the two Entities are                              under common control; or (iii) the two Entities are Investment Entities described in subparagraph A(6)(b), are under common                              management, and such management fulfils the due diligence obligations of such Investment Entities. For this purpose control                              includes direct or indirect ownership of more than 50 % of the vote and value in an Entity.                           

The term “TIN” means Taxpayer Identification Number (or functional equivalent in the absence of a Taxpayer Identification                              Number).                           

The term “Documentary Evidence” includes any of the following:

a certificate of residence issued by an authorised government body (for example, a government or agency thereof, or a municipality)                                       of the Member State or other jurisdiction in which the payee claims to be a resident;                                    

with respect to an individual, any valid identification issued by an authorised government body (for example, a government                                       or agency thereof, or a municipality), that includes the individual's name and is typically used for identification purposes;                                    

with respect to an Entity, any official documentation issued by an authorised government body (for example, a government or                                       agency thereof, or a municipality) that includes the name of the Entity and either the address of its principal office in                                       the Member State or other jurisdiction in which it claims to be a resident or the Member State or other jurisdiction in which                                       the Entity was incorporated or organised;                                    

any audited financial statement, third-party credit report, bankruptcy filing, or securities regulator's report.

With respect to a Pre-existing Entity Account, Reporting Financial Institutions may use as Documentary Evidence any classification                              in the Reporting Financial Institution's records with respect to the Account Holder that was determined based on a standardised                              industry coding system, that was recorded by the Reporting Financial Institution consistent with its normal business practices                              for purposes of AML/KYC Procedures or another regulatory purposes (other than for tax purposes) and that was implemented by                              the Reporting Financial Institution prior to the date used to classify the Financial Account as a Pre-existing Account, provided                              that the Reporting Financial Institution does not know or does not have reason to know that such classification is incorrect                              or unreliable. The term “standardised industry coding system” means a coding system used to classify establishments by business                              type for purposes other than tax purposes.                           

#### SECTION IXU.K.**EFFECTIVE IMPLEMENTATION**

Pursuant to Article 8(3a) of this Directive, Member States must have rules and administrative procedures in place to ensure                     effective implementation of, and compliance with, the reporting and due diligence procedures set out above including:                  

rules to prevent any Financial Institutions, persons or intermediaries from adopting practices intended to circumvent the                              reporting and due diligence procedures;                           

rules requiring Reporting Financial Institutions to keep records of the steps undertaken and any evidence relied upon for                              the performance of the above procedures and adequate measures to obtain those records;                           

administrative procedures to verify Reporting Financial Institutions' compliance with the reporting and due diligence procedures;                              administrative procedures to follow up with a Reporting Financial Institution when undocumented accounts are reported;                           

administrative procedures to ensure that the Entities and accounts defined in domestic law as Non-Reporting Financial Institutions                              and Excluded Accounts continue to have a low risk of being used to evade tax; and                           

effective enforcement provisions to address non-compliance.

#### SECTION XU.K.**IMPLEMENTATION DATES AS REGARDS REPORTING FINANCIAL INSTITUTIONS LOCATED IN AUSTRIA**

In the case of Reporting Financial Institutions located in Austria, all references to “2016” and “2017” in this Annex should                     be read as references to “2017” and “2018” respectively.                  

In the case of Pre-existing Accounts held by Reporting Financial Institutions located in Austria, all references to “31 December                     2015” in this Annex should be read as references to “31 December 2016”.                  

### ANNEX IICOMPLEMENTARY REPORTING AND DUE DILIGENCE RULES FOR FINANCIAL ACCOUNT INFORMATION

#### 1.Change in circumstancesU.K.

A “change in circumstances” includes any change that results in the addition of information relevant to a person's status                     or otherwise conflicts with such person's status. In addition, a change in circumstances includes any change or addition of                     information to the Account Holder's account (including the addition, substitution, or other change of an Account Holder) or                     any change or addition of information to any account associated with such account (applying the account aggregation rules                     described in subparagraphs C(1) through (3) of Section VII of Annex I) if such change or addition of information affects the                     status of the Account Holder.                  

If a Reporting Financial Institution has relied on the residence address test described in subparagraph B(1) of Section III                     of Annex I and there is a change in circumstances that causes the Reporting Financial Institution to know or have reason to                     know that the original Documentary Evidence (or other equivalent documentation) is incorrect or unreliable, the Reporting                     Financial Institution must, by the later of the last day of the relevant calendar year or other appropriate reporting period,                     or 90 calendar days following the notice or discovery of such change in circumstances, obtain a self-certification and new                     Documentary Evidence to establish the residence(s) for tax purposes of the Account Holder. If the Reporting Financial Institution                     cannot obtain the self-certification and new Documentary Evidence by such date, the Reporting Financial Institution must apply                     the electronic record search procedure described in subparagraphs B(2) through (6) of Section III of Annex I.                  

#### 2.Self-certification for New Entity AccountsU.K.

With respect to New Entity Accounts, for the purposes of determining whether a Controlling Person of a Passive NFE is a Reportable                     Person, a Reporting Financial Institution may only rely on a self-certification from either the Account Holder or the Controlling                     Person.                  

#### 3.Residence of a Financial InstitutionU.K.

A Financial Institution is “resident” in a Member State if it is subject to the jurisdiction of such Member State (i.e., the                     Member State is able to enforce reporting by the Financial Institution). In general, where a Financial Institution is resident                     for tax purposes in a Member State, it is subject to the jurisdiction of such Member State and it is, thus, a Member State                     Financial Institution. In the case of a trust that is a Financial Institution (irrespective of whether it is resident for                     tax purposes in a Member State), the trust is considered to be subject to the jurisdiction of a Member State if one or more                     of its trustees are resident in such Member State except if the trust reports all the information required to be reported                     pursuant to this Directive with respect to Reportable Accounts maintained by the trust to another Member State because it                     is resident for tax purposes in such other Member State. However, where a Financial Institution (other than a trust) does                     not have a residence for tax purposes (e.g., because it is treated as fiscally transparent, or it is located in a jurisdiction                     that does not have an income tax), it is considered to be subject to the jurisdiction of a Member State and it is, thus, a                     Member State Financial Institution if:                  

it is incorporated under the laws of the Member State;

it has its place of management (including effective management) in the Member State; or

it is subject to financial supervision in the Member State.

Where a Financial Institution (other than a trust) is resident in two or more Member States, such Financial Institution will                     be subject to the reporting and due diligence obligations of the Member State in which it maintains the Financial Account(s).                  

#### 4.Account maintainedU.K.

In general, an account would be considered to be maintained by a Financial Institution as follows:

in the case of a Custodial Account, by the Financial Institution that holds custody over the assets in the account (including                              a Financial Institution that holds assets in street name for an Account Holder in such institution);                           

in the case of a Depository Account, by the Financial Institution that is obligated to make payments with respect to the account                              (excluding an agent of a Financial Institution regardless of whether such agent is a Financial Institution);                           

in the case of any equity or debt interest in a Financial Institution that constitutes a Financial Account, by such Financial                              Institution;                           

in the case of a Cash Value Insurance Contract or an Annuity Contract, by the Financial Institution that is obligated to make                              payments with respect to the contract.                           

#### 5.Trusts that are Passive NFEsU.K.

An Entity such as a partnership, limited liability partnership or similar legal arrangement that has no residence for tax                     purposes, according to subparagraph D(3) of Section VIII of Annex I, shall be treated as resident in the jurisdiction in which                     its place of effective management is situated. For these purposes, a legal person or a legal arrangement is considered “similar”                     to a partnership and a limited liability partnership where it is not treated as a taxable unit in a Member State under the                     tax laws of such Member State. However, in order to avoid duplicate reporting (given the wide scope of the term “Controlling                     Persons” in the case of trusts), a trust that is a Passive NFE may not be considered a similar legal arrangement.                  

#### 6.Address of Entity's principal officeU.K.

One of the requirements described in subparagraph E(6)(c) of Section VIII of Annex I is that, with respect to an Entity, the                     official documentation includes either the address of the Entity's principal office in the Member State or other jurisdiction                     in which it claims to be a resident or the Member State or other jurisdiction in which the Entity was incorporated or organised.                     The address of the Entity's principal office is generally the place in which its place of effective management is situated.                     The address of a Financial Institution with which the Entity maintains an account, a post office box, or an address used solely                     for mailing purposes is not the address of the Entity's principal office unless such address is the only address used by the                     Entity and appears as the Entity's registered address in the Entity's organisational documents. Further, an address that is                     provided subject to instructions to hold all mail to that address is not the address of the Entity's principal office.”                  

1

OJ C 67, 6.3.2014, p. 68.                           

2

Council Directive 2011/16/EU of 15 February 2011 on administrative cooperation in the field of taxation and repealing Directive                              77/799/EEC (OJ L 64, 11.3.2011, p. 1).                           

3

Council Directive 2003/48/EC of 3 June 2003 on taxation of savings income in the form of interest payments (OJ L 157, 26.6.2003, p. 38).’