The CRA FATCA Guidance states that in view of current
compliance practices and working relationships between dealers
and funds for client-name accounts, the CRA expects dealers
to perform due diligence and account classification and funds
to perform reporting in respect of such investments, unless the
dealer will take responsibility for its own reporting.
Thus, with respect to fund investments in client-name that are
also contained in an account of a dealer, the dealer has the due
diligence and account classification obligation, but may choose
to either do its own reporting in respect of the investment or
request that the fund do the reporting. If the dealer has the latter
arrangement in place with the fund and timely communicates the
account holder’s status to the fund, the dealer can assume that
the proper reporting will be done. The fund, on the other hand,
is generally absolved of the due diligence, account classification
and reporting obligations in respect of such an investment unless
either: (a) the dealer has requested in writing that the fund do the
reporting; or (b) the fund has reasonably concluded that the dealer
has not complied with its reporting obligations. If the dealer has
requested that the fund do the reporting and has communicated
the account holder’s status to the fund, the fund is entitled to rely
on the dealer’s determination in doing the reporting (unless the
fund can reasonably conclude that the dealer has not complied
with its due diligence obligations).
Next Steps for Exempt Market Dealers
• EMDs that have not yet registered on the IRS FATCA Portal and
who are required to do so should register and obtain a Global
Intermediary Identification Number (GIIN).
• EMDs need to coordinate and communicate their FATCA efforts
with investment funds by having an agreement in place that outlines
the due diligence and reporting responsibilities of each entity.
• EMDs should ensure that account opening procedures are
implemented for both client-name and nominee-name accounts
so that the required information is collected for reporting purposes.
• EMDs should conduct due diligence procedures on pre-existing
individual nominee-name and client-name accounts exceeding
prescribed thresholds to determine accounts that are U.S.
• EMDs should understand their new reporting obligations to the
CRA of all U.S. reportable accounts identified in the review and
due diligence procedures.
For more information contact:
Client: PDAC 2015
Desc.: FP 4C
Trim: 8. 5" x 5. 5"
Bleed: 8.756" x 5.756"
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March 1 – 4, 2015
Prospectors & Developers Association of Canada
International Convention, Trade Show & Investors Exchange
Metro Toronto Convention Centre
PDAC2015-PCMA.indd 1 11/12/14 10:47AM