The regulations have a concept of a Certified Deemed Compliant FFI (‘DCFFI’). The first column of the table below shows the conditions that an FFI needs to satisfy to be a certified DCFFI and the second column shows whether a typical member of the AFM would satisfy the relevant condition. Relevant condition which FFI must The AFM members meet Must operate and be licensed solely as a insurance companies and friendly bank. societies so not satisfy Must be licensed to conduct business in for all AFM members its country of incorporation or organisation. Must have no fixed place of business for majority of AFM members outside of such country. Must not solicit account holders outside for majority of AFM members of its country of organisation The FFI must have no more than $175 60% of the membership have million assets on its balance consolidated group assets (and therefore entity assets) below $175 million If the FFI is a member of a consolidated 70% of the membership have group then the group may have no more consolidated group assets below $500 than $500 million of combined assets. million (see Appendix 1) Must be required under local tax laws to Our members are largely subject to perform either information reporting or information reporting or withholding withholding of tax with respect to resident requirements in the UK in respect of the accounts. An FFI that is not subject to majority of financial accounts see section such information reporting or withholding 11. To the extent that there is no requirements will be considered to meet information reporting or withholding this requirement if all of the accounts requirements we expect the account maintained by the FFI have a value of value to be less than the applicable de $50,000 or less. minimis. For groups, each FFI in the expanded for the majority of members affiliated group must be incorporated or organised in the same country and must meet the requirements to be a certified DCFFI. The table below shows the relevant UK reporting and withholding requirements for products offered by our members which are considered to be financial accounts.
The regulations have a concept of a Certified Deemed Compliant FFI (‘DCFFI’). The first column of the table below shows the conditions that an FFI needs to satisfy to be a certified DCFFI and the second column shows whether a typical member of the AFM would satisfy the relevant condition. Relevant condition which FFI must meet The AFM members Must operate and be licensed solely as a bank. insurance companies and friendly societies so not satisfy Must be licensed to conduct business in its country of incorporation or organisation. for all AFM members Must have no fixed place of business outside of such country. for majority of AFM members Must not solicit account holders outside of its country of organisation for majority of AFM members The FFI must have no more than $175 million assets on its balance 60% of the membership have consolidated group assets (and therefore entity assets) below $175 million If the FFI is a member of a consolidated group then the group may have no more than $500 million of combined assets. 70% of the membership have consolidated group assets below $500 million (see Appendix 1) Must be required under local tax laws to perform either information reporting or withholding of tax with respect to resident accounts. An FFI that is not subject to such information reporting or withholding requirements will be considered to meet this requirement if all of the accounts maintained by the FFI have a value of $50,000 or less. Our members are largely subject to information reporting or withholding requirements in the UK in respect of the majority of financial accounts see section 11. To the extent that there is no information reporting or withholding requirements we expect the account value to be less than the applicable de minimis. For groups, each FFI in the expanded affiliated group must be incorporated or organised in the same country and must meet the requirements to be a certified DCFFI. for the majority of members The table below shows the relevant UK reporting and withholding requirements for products offered by our members which are considered to be financial accounts.
AFM%20response%20on%20FATCA%20regulations.docx