02.17 – Qualified Collective Investment Vehicles

The term Qualified Collective Investment Vehicles (QCIV) applies to Investment Entities that are owned solely through Participating Foreign Financial Institutions or directly by large institutional investors (e.g. pension funds) not typically subject to FATCA withholding or reporting.

The term Qualified Collective Investment Vehicles (QCIV) applies to Investment Entities that are owned solely through Participating Foreign Financial Institutions or directly by large institutional investors (e.g. pension funds) not typically subject to FATCA withholding or reporting.

A QCIV must itself be an Investment Entity and must be regulated as an Investment Entity in the UK and every other country in which it operates. A Fund is considered to be regulated if its manager is regulated with respect to the fund in all of the countries in which the investment fund is registered and in all of the countries in which the investment fund operates.

A QCIV’s investors can be equity investors, direct debt investors with an interest greater than $50,000 and other Financial Account holders but are limited to participating Foreign Financial Institutions, Registered Deemed Compliant Foreign Financial Institutions, retirement plans classified as Exempt Beneficial Owners, US Persons that are not Specified US Persons, Non-Reporting IGA Foreign Financial Institutions, or other Exempt Beneficial Owners.

Each member of the group of Related Entities must be a Participating Foreign Financial Institution, a Registered Deemed Compliant Foreign Financial Institution, a sponsored Foreign Financial Institution, a Non-Reporting IGA Foreign Financial Institution or an Exempt Beneficial Owner.