Assisting a Fund Manager to Obtain Qualified Intermediary (QI) Status
The client is a Monetary Authority of Singapore (MAS)-licensed fund manager whose principal activities can be segmented into two main businesses: (1) wealth management, and (2) fund management activities. With clientele that include entrepreneurs, family offices, foundations, and companies in Europe and Asia, they managed a total combined portfolio of $150m.
Given its increasing portfolio of US assets (and resulting US-sourced income), the client sought Pragma's guidance in applying for qualified intermediary (QI) status with the US Internal Revenue Service (IRS).
Pragma's Compliance, Conduct, and Regulatory Risk team worked with the client on the license application, which included attestation of the organization's AML/KYC capabilities (i.e., identification and ongoing monitoring of customers, tax withholding, tax reporting).
The review also included an assessment of its compliance to the requirements under the Foreign Account Tax Compliance Act (FATCA) provisions.
Besides successfully obtaining QI status for the client, Pragma provided insight current market practice and ways of improving the customer experience given increasingly-onerous customer due diligence/AML/CFT and regulatory reporting requirements.