|1. FATCA analysis||
||In FATCA the only mention of Corporate Directors is when classifying them as entities, but not Financial Institutions.|
|2. BVI IGA with UK||
||The BVI guidelines opine that Coroporate Directors do not do activities of an investment entity.|
|3. CRS analysis||
||Corporate directors are not manager investment entities. They do not administer financial assets. It is the company that does that, acting on instructions by corporate director. Nor do they administer on behalf of others…|
|4. Brief||Brief on why a Corporate Director is not a manager type investment entity.|
|5. Authority to manage assets||
From the OECD FAQ on CRS
In what circumstances will an Entity be managed by another Entity that is a Depository Institution, Custodial Institution, a Specified Insurance Company, or an Investment Entity described in Section III, subparagraph A(6)(a)?
The Commentary provides, for purposes of determining whether an Entity is an Investment Entity described in Section VIII, paragraph (A)(6)(b), that
Some CRS advisors incorrectly opine that if a Corporate Director (CD) merely has the authority to discretionary manage assets, without actually managing the assets, then the CD is an Investment Entity. As such, the CD helps the entity it manages pass the management test for being an Investment Entity. The other test to be an Investment Entity is the income test.
It can clearly be seen from the FAQ that the CD must:
What if the Corporate Director manages the assets of another entity, but not manage the assets of the entity under question?
The Corporate Director would be an Investment Entity for the other entity and hence it is likley that the Corporate Director is an Investment Entity for all entities that it manages. But this would require clarification by OECD.