The FATCA & CRS Process Agreements establishes a mutual agreement between manufacturers and distributors as it relates to FATCA & CRS compliance for mutual funds and segregated fund contracts.

Foreign Account Tax Compliance Act (FATCA)

In March 2010, the U.S. enacted the Foreign Account Tax Compliance Act (FATCA). Domestic privacy and access to financial services laws made it impossible for Foreign Financial Institutions (FFIs) in many countries to sign and comply with the FFI agreements to be signed with the IRS. To address these issues, the U.S. government developed model intergovernmental agreements (IGA).

Canada and the U.S. signed an IGA on February 5, 2014, which was enacted in Canadian law on June 27, 2014. Under the IGA and the Enhanced International information Reporting Part XVIII of the Income Tax Act (Canada) (Part XVIII), Canadian financial institutions are required to identify account holders who are U.S. persons for U.S. tax purposes (both U.S. tax residents and U.S. citizens) and to report certain information about those accounts to the Canada Revenue Agency (CRA), which then exchanges this information with the U.S. Internal Revenue Service (IRS). For more information, please refer to the section on CRA’s website entitled Enhanced financial account information reporting.

Common Reporting Standards (CRS)

In July 2014, the Organisation for Economic Co-operation and Development (OECD) approved the Common Reporting Standard (CRS) with the support of Canada and the other G20 industrialized countries. On December 15, 2016, Canadian legislation was enacted in order to implement CRS in Canada. Effective July 1, 2017, Canadian financial institutions will be required under Common Reporting Standard Part XIX of the Income Tax Act (Canada) (Part XIX) to identify and report information on accounts held by persons who are resident for tax purposes in any country other than Canada or the U.S. Similar to Part XVIII, the CRA will then exchange this information with tax authorities of the participating countries. For more information, please refer to the section on the CRA’s website entitled Common Reporting Standards.

The Canadian investment funds and insurance industry has collaborated to develop the following documents to assist distributors and manufacturers with the implementation and adherence of the FATCA and CRS

  • FATCA & CRS Process Agreements for Client Name Mutual Funds & Nominee Name Segregated Fund Contracts. 
    • nominee mutual funds − the distributor is responsible for both due diligence and reporting
    • client name segregated funds − the insurer is responsible for both due diligence and reporting.FATCA and CRS Process Agreements for Client Name Mutual Funds and Nominee Name Segregated Fund Contracts are critical to facilitating the industry’s FATCA and CRS compliance by:
      • confirming which parties (i.e., the manufacturer or distributor) are responsible for due diligence and reporting to the CRA
      • eliminating duplication of effort by manufacturers and distributors
      • minimizing duplicate reporting of Canadians to CRA (and the IRS and other jurisdictions) by ensuring that distributors and manufacturers do not both report the same accounts to CRA
      • minimizing compliance burdens by ensuring consistent treatment for nominee segregated funds and nominee mutual funds (since, in the case of reportable accounts holding both these products, it will presumably be easier for distributors to report the whole client account as opposed to having to make an adjustment for example to exclude nominee segregated funds before reporting to CRA).

      Under the agreements, FATCA and CRS responsibilities are as follows:

      • client name mutual funds − the distributor is responsible conducting due diligence and providing the investor’s tax statuses to the manufacturer;  the manufacturer does the reporting to the CRA
      • nominee name segregated fund contracts − as with nominee mutual funds, the distributor is responsible for both due diligence and reporting.

      Agreements are not required for nominee mutual funds and client name segregated funds because the roles of the distributor and manufacturer are already clear in CRA’s Guidance as follows:

Agreements for Signature:

Client Name Mutual Fund Accounts 

Nominee Name Segregated Fund Contracts

Note:  As noted above, the following products do NOT require the above FATCA & CRS Process Agreements:

  • Nominee Name Mutual Funds (distributor collects and reports)
  • Client Name Segregated Funds (distributor is agent of the Manufacturer (Insurers).The agent provides information to the Manufacturer as per agent relationship. The Manufacturer collects and reports)

FATCA & CRS Registration Information (one for Distributors/one for Manufacturers) – complete and submit signed copy to Fundserv.

Annual Declaration (one per Distributor) – complete and submit signed copy to Fundserv.

Frequently Asked Questions 

Add/Mod FATCA-CRS Individual & Entity CSV Templates 

  • to be used by distributor for manual additions or changes they want manufacturers to make manually and remove any records that are not changing (sent directly to manufacturer)
  • Amendments must be sent as separate requests along with LOI and supporting documentation
  • Completed distributor requests are to be sent directly to manufacturer
  • To be used by manufacturer for Annual Account Listing Requests sent directly to distributor
  • Add/Mod Individual Template
  • Add/Mod Entity Template

Request for FATCA/CRS Status Reports for the 2019 Tax Year
Complete and submit signed copy to Fundserv

Agreements, registration forms and declarations can be mailed or emailed to Fundserv to the attention of Customer Relations.

Mailing address is: 
333 Bay St.
Suite 2600
Toronto, ON M5H 2R2
Email: crsfatca@fundserv.com

If you have any questions relating  to any of the documents below or require additional information, please contact:

James Carman at jcarman@ific.ca for Mutual Funds & FATCA or CRS.

The FATCA and CRS documentation (Guide) posted on the Fundserv website was prepared by a working group consisting of members of The Investment Funds Institute of Canada (IFIC), The Investment Industry Association of Canada (IIAC), The Federation of Mutual Fund Dealers (FMFD) and The Canadian Life and Health Insurance Agency (CLHIA) to establish a standardized approach for the Canadian investment fund industry. Fundserv is not the author of the Guide and, while it has no reason to doubt the information contained in the Guide, Fundserv takes no responsibility for its accuracy. Any questions about the information contained in the Guide should be directed to IFIC, IIAC or the CLHIA.

FATCA & CRS Firm Acknowledgement