California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 17 - Allocation of Income › Article 2.5 - Uniform Division of Income for Tax Purposes Act › Section 25137-14 - Mutual Fund Service Providers and Asset Management Service Providers

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Definitions.
As used in this section, unless the context otherwise
						indicates, the following terms have the following meanings:
(1) "Administration services" include, but
					 are not limited to, clerical, fund or shareholder accounting; participant
					 record-keeping, transfer agency, bookkeeping, data processing, custodial,
					 internal auditing, legal, and tax services performed for a regulated investment
					 company. Services qualify as administration services only if the provider of
					 such service or services during the taxable year also provides, or is
					 affiliated with a person that provides, management or distribution services to
					 the same regulated investment company during the same taxable year.
(2) "Distribution services" include, but are
					 not limited to, the services of advertising, servicing, marketing or selling
					 shares of a regulated investment company. The services of advertising,
					 servicing or marketing shares qualify as distribution services only when the
					 service is performed by a person who is, or in the case of a closed-end company
					 was, either engaged in the business of selling regulated investment company
					 shares or affiliated with a person that is engaged in the service of selling
					 regulated investment company shares. In the case of an open-end company, such
					 service of selling shares must be performed pursuant to a contract entered into
					 pursuant to 15 United States
					 Code, Section 80a-15(b), as
					 amended.
(3) "Management services"
					 include, but are not limited to, the rendering of investment advice, directly
					 or indirectly, to a regulated investment company, making determinations as to
					 when sales and purchases of securities are to be made on behalf of the
					 regulated investment company or providing services related to the selling or
					 purchasing of securities constituting assets of a regulated investment company,
					 and related activities. Services qualify as management services only when such
					 activity or activities are performed pursuant to a contract with the regulated
					 investment company entered into pursuant to
					 15 United States Code,
					 Section 80a-15(a), as
					 amended, for a person that has entered into such a contract with the regulated
					 investment company or for a person that is affiliated with a person that has
					 entered into such a contract with a regulated investment company.
(4) "Domicile" is defined as follows:
(A) The domicile of a shareholder of a
					 regulated investment company is presumed to be the shareholder's mailing
					 address on the records of the regulated investment company or the mutual fund
					 service provider. If the regulated investment company or the mutual fund
					 service provider has actual knowledge that the shareholder's primary residence
					 or principal place of business is different than the shareholder's mailing
					 address, the presumption does not control. Shareholders of record that own
					 shares for the benefit of others are subject to the special rule contained in
					 subsection (b)(1)(A)1 of this regulation.
(B) The domicile of a beneficial owner of
					 assets managed by a mutual fund service provider shall be presumed to be the
					 beneficiary's mailing address on the records of the entity for whom the asset
					 management services are rendered, or on the records of the mutual fund service
					 provider. If the entity for whom the asset management services are rendered, or
					 the mutual fund service provider, has actual knowledge that the beneficiary's
					 primary residence or principal place of business is different than the
					 beneficiary's mailing address, the presumption does not control. Owners of
					 record that are not the beneficial owner are subject to the special rule
					 contained in subsection (b)(1)(B)1 of this regulation.
(5) "Mutual fund service provider" means any
					 unitary business that derives income from the direct or indirect provision of
					 management, distribution or administration services to or on behalf of a
					 regulated investment company.
(6)
					 "Regulated Investment Company" means a regulated investment company as defined
					 in Section
					 851 of the Internal Revenue
					 Code.
(7) "Asset management
					 services" means the direct or indirect provision of management, distribution or
					 administrative services to entities other than regulated investment companies,
					 if those services would be management, distribution or administrative services
					 within the meaning of subparagraphs (a)(1), (a)(2), or (a)(3) of this
					 regulation, if provided directly or indirectly to a regulated investment
					 company.