Source: https://haydonperryman.com/terms-and-definitions/investment-entity/
Timestamp: 2017-08-19 09:07:06
Document Index: 588995976

Matched Legal Cases: ['§1', '§1', '§1', '§1', '§1', '§1', '§1']

Investment Entity | FATCA & CRS Training. Advice. Consultancy.
HomeTerms and DefinitionsInvestment Entity
a) that primarily conducts as a business one or more of the following activities or operations for or on behalf of a customer
ii) individual and collective portfolio management; oriii) otherwise investing, administering, or managing Financial Assets or money on behalf of other persons; or
b) 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 anInvestment 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 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 it meets any of the criteria in subparagraphs D(9)(d) through (g).This paragraph shall be interpreted in a manner consistent with
iii) otherwise investing, administering, or managing Financial Assets or money on behalf of other persons; orb) 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, aCustodial Institution, a Specified Insurance Company, or anInvestment 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 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:
(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 it meets any of the criteria in subparagraphs D(9)(d) through (g).This paragraph shall be interpreted in a manner consistent with
(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 it meets any of the criteria in subparagraphs D(9)(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.
(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 it meets any of the criteria in subparagraphs D(9)(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.
(4)(i) In general [§1.1471-5(e)(4)(i)]
The term investment entity means any entity that is described in paragraph (e)(4)(i)(A), (B), or (C) of this section.
(i)(A) The entity primarily conducts as a business one or more of the following activities or operations for or on behalf of a customer- [§1.1471-5(e)(4)(i)(A)]
(1) Trading in money market instruments (checks, bills, certificates of deposit, derivatives, etc.); foreign currency; foreign exchange, interest rate, and index instruments; transferable securities; or commodity futures; [§1.1471-5(e)(4)(i)(A)(1)]
(2) Individual or collective portfolio management; or [§1.1471-5(e)(4)(i)(A)(2)]
(3) Otherwise investing, administering, or managing funds, money, or financial assets on behalf of other persons. [§1.1471-5(e)(4)(i)(A)(3)]
(i)(B) The entity’s gross income is primarily attributable to investing, reinvesting, or trading in financial assets (as defined in paragraph (e)(4)(ii) of this section) and the entity is managed by another entity that is described in paragraph (e)(1)(i), (ii), (iv), or (e)(4)(i)(A) of this section. For purposes of this paragraph (e)(4)(i)(B), an entity is managed by another entity if the managing entity performs, either directly or through another third-party service provider, any of the activities described in paragraph (e)(4)(i)(A) of this section on behalf of the managed entity. [§1.1471-5(e)(4)(i)(B)]
(i)(C) The entity functions or holds itself out as a collective investment vehicle, mutual fund, exchange traded fund, private equity fund, hedge fund, venture capital fund, leveraged buyout fund, or any similar investment vehicle established with an investment strategy of investing, reinvesting, or trading in financial assets. [§1.1471-5(e)(4)(i)(C)]
UK Inter Governmental Agreement and Statutory Instrument
For the purposes of these Regulations a person (person A) carries on business in the United Kingdom as an investment entity if—
(a) person A undertakes any of the activities referred to in sub-paragraph 1(j)(1) to (3) of Article 1 of the treaty in the course of carrying on business in the United Kingdom, and A’s gross income from that business for the applicable period wholly or mainly derives from those activities, or
(b) on behalf of person A, a financial institution (person B) undertakes any of the activities referred to in sub-paragraph 1(j)(1) to (3) of Article 1 of the treaty in the course of carrying on business in the United Kingdom, and person A’s gross income from the activities undertaken on behalf of person A by person B for the applicable period wholly or mainly derives from investing or dealing in financial assets. [UKSI.2014 No. 1506]
(1) 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;
(3) otherwise investing, administering, or managing funds or money on behalf of other persons. This subparagraph 1(j) 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. [UK IGA]
AEIM 100760
UK FATCA Guidance, September 14, 2015, paragraph 2.28