U.K. and U.S. Amend Annex II to FATCA IGA
The United Kingdom and the United States have entered into an Exchange of Notes agreeing to replace Annex II to the FATCA Intergovernmental Agreement ("IGA"). The IGA was originally entered into between the United States and the United Kingdom on September 12, 2012, and was the first IGA signed by the United States. Annex II lists the institutions and accounts that the United States and the United Kingdom have agreed to treat as "exempt beneficial owners" or "deemed-compliant" financial institutions and products that are exempt from all or most of the reporting and other requirements under FATCA.
The new Annex II reflects many terms that were incorporated in IGAs negotiated with other countries subsequent to the U.K. agreement, as well as some of the terms reflected in a recently revised Model 1 Annex II published by the United States Treasury. Additionally, it adds a new category of "deemed-compliant" financial institutions for certain "collective investment vehicles" that is similar to clauses in the IGA with Germany and Norway. In addition, the revised Annex II includes a new "deemed compliant" category for "trustee-documented trusts", trusts established in the U.K. whose trustee is a participating financial institution that reports all of the information required under the IGA to the U.K. with respect to U.S. Reportable Accounts of the Trust. Also added as an "exempt product" are accounts maintained in the United Kingdom excluded from FATCA reporting under an IGA between the U.S. and another country provided that such account is subject to certain conditions.