Foreign Account Tax Compliance Act (FATCA)

July 2019

CIBC Mellon and many of its clients are required to take action by the U.S. Department of the Treasury, U.S. Internal Revenue Service (IRS) and the Canadian government (through the legislation introducing the Canada-U.S. Intergovernmental Agreement) (the "IGA") with respect to implementing the provisions of the Foreign Account Tax Compliance Act (FATCA).

CIBC Mellon lists below some of the background and previous information that we (and our U.S. parent company BNY Mellon) have provided on the topic of FATCA. However, as every client's situation is different, and as CIBC Mellon does not provide tax, legal or compliance advice, clients are encouraged to consult with their respective tax advisors.

1. FATCA Background
2. FATCA Resources from CIBC Mellon
3. FATCA Resources from the Department of Finance and the CRA
4. FATCA Resources from the IRS
5. CIBC Mellon's intentions and responsibilities under FATCA
6. CIBC Mellon's expectations of clients: actions and decisions required
7. Key FATCA Dates
8. FATCA: Frequently Asked Questions (as at July 31, 2019)

1. FATCA Background

FATCA was enacted into U.S. law in March 2010 as part of the U.S. government's efforts to discover U.S. taxpayers who were allegedly attempting to shield their income from U.S. taxation by investing and earning income through non-U.S. institutions. Under FATCA, certain types of financial institutions are required to register with the IRS or face a very significant penalty of 30 per cent withholding tax on certain U.S.-source income payments and gross proceeds.

What started as a U.S. initiative has grown into a major global exercise through a series of intergovernmental agreements that have been signed or are being negotiated between various countries, including Canada, and the U.S. Additional tax compliance initiatives have also been undertaken in response to FATCA by international organizations such as the Organisation for Economic Co-operation and Development (OECD). There has therefore been a substantial increase both in the complexity of the global tax environment and in related disclosure requirements. As a result of FATCA's influence, service providers like CIBC Mellon and institutional investors including many of our clients, are required to determine, in consultation with their respective tax advisors, the impacts of the new requirements to their individual business.

2. FATCA Resources from CIBC Mellon

CIBC Mellon has provided clients with a series of communications related to FATCA. These communications were based on the information available at the time that they were distributed, and therefore may not represent the latest FATCA details. Information provided has included:

• Straight Talk, December 1, 2015: IRS Releases FATCA Online Registration Application for Sponsored Entities to Obtain a GIIN
• Straight Talk, November 17, 2015: Update on the 4th FATCA and Global Tax Compliance Forum
• Straight Talk November 3, 2015: CIBC Mellon's Simon Lee to Speak on Ways to Clarify FATCA Regulations at a Global Forum in New York
• Straight Talk, September 22, 2015 FATCA - IRS Extends the Application of Certain Transitional Rules
• Straight Talk, June 9, 2015: FATCA: IRS update on the status of sponsored entities
• Straight Talk, November 21, 2014: FATCA Compliance for U.S. Accountholders: IRS releases Draft W-9 Form
• Straight Talk, November 7, 2014: U.S.A. - IRS releases updated Forms W-8 instructions
• Straight Talk, June 11, 2014: IRS Launches FATCA List Search and Download Tool on its Website
• Straight Talk, May 14, 2014: The Internal Revenue Service (IRS) releases several major announcements regarding FATCA
• Straight Talk, May 5, 2014: U.S.A. - IRS Form W-8IMY Updated
• Straight Talk, April 10, 2014: The Internal Revenue Service Extends Initial FATCA Registration Deadline to May 5, 2014
• Straight Talk, April 03, 2014: Internal Revenue Agency (IRS) Releases Form W-8BEN-E on March 29, 2014
• Straight Talk, March 28, 2014: U.S.A. - Forms W-8BEN and W-8ECI Updated
• Straight Talk, February 7, 2014: Canada and U.S. Sign Intergovernmental Agreement Outlining FATCA Requirements Including Specific Exemptions for Canadian Entities

CIBC Mellon updated its FATCA information circular on November 22, 2013, September 22, 2013 and June 1, 2013 which we made available via relationship managers. If you would like a copy of one of these documents, please contact us.

• Trade Talk, October 2012: An update on FATCA
• Trade Talk, February 2012: FATCA update: U.S. releases proposed regulations
• Trade Talk, October 2010: FATCA: New U.S. tax rules to compel disclosure of U.S. account holder information to the IRS

3. FATCA Resources from the Department of Finance and the CRA

For the latest information about FATCA, please refer to the information page for Foreign Financial Institutions on the Department of Finance and the Canada Revenue Agency (CRA) websites.

• Enhanced Financial Account Information Reporting
• Guidance on the Canada-U.S. Enhanced Tax Information Exchange Agreement
• Intergovernmental Agreement for the Enhanced Exchange of Tax Information under the Canada-U.S. Tax Convention (IGA)
• Legislation (Part XVIII – Enhanced International Information Reporting)
• Completing Part XVIII Information Return slips and summary

4. FATCA Resources from the IRS

For the latest information about FATCA, please refer to the information page for Foreign Financial Institutions on the Internal Revenue Service (IRS) website.

• IRS registration portal
• IRS FATCA User Guide
• Final Regulations
• Notice 2014-33
• Notice 2013-43

FATCA forms from the IRS

Form	Instructions	Mandatory Payee
W-8BEN	Instructions for W-8BEN	The Form W-8BEN must be completed by individuals to certify their status as foreign beneficial owners.
W-8BEN-E	Instructions for W-8BEN-E	The Form W-8BEN-E must be completed by non-individuals (i.e. entities) to certify their status as foreign beneficial owners.
W-8ECI	Instructions for W-8ECI	The Form W-8ECI must be completed by non-individuals to certify their status as foreign beneficial owners of effectively connected income.
W-8EXP	Instructions for W-8EXP	The Form W-8EXP must be completed by foreign governments, foreign tax exempt organizations, etc. to certify their status as foreign beneficial owners.
W-8IMY	Instructions for W-8IMY	The Form W-8IMY must be completed by foreign intermediaries or flow-through entities.
W-9	Instructions for the Requester of the Form W-9	The Form W-9 must be completed by US persons to certify their US taxpayer identification number (TIN).

5. CIBC Mellon's intentions and responsibilities under FATCA

1. As a custodian
2. As a unitholder recordkeeper
3. As a trustee

a) As a custodian

CIBC Mellon has registered as a Registered Deemed-Compliant Foreign Financial Institution (RDCFFI) under FATCA, and is fully compliant with FATCA. As a RDCFFI under FATCA, CIBC Mellon has four key responsibilities:

• To register with the U.S. IRS.
• To document and classify account holders.
• To withhold 30 per cent on certain U.S. source income of those non-participating financial institutions (NPFIs).
• To report on the accounts identified as U.S. Reportable Accounts to the CRA.

b) As a recordkeeping service provider

As a service agent providing recordkeeping services (RK), CIBC Mellon does not have a legal responsibility to provide FATCA services to its institutional clients, as those clients are ultimately responsible to the tax authorities. While responsibility for compliance with know-your-client obligations, account set-up and trade instructions lies with our URK clients and/or their dealers, we have nonetheless undertaken certain process changes in order to support our clients. We have updated our RK systems so that we can receive and store residency information based on U.S. indicia, as well as receive and store from clients the FATCA classification of underlying investors. We have also developed new reporting designed to assist clients with their reporting to the CRA. Payments made to the underlying investors from the accounts are considered Canadian-source income, and thus are not eligible for FATCA withholding until such time that Pass-through Payment legislation is enacted, no earlier than 2017. CIBC Mellon will continue to monitor the impact this legislation will have on the URK line of business.

c) As a trustee

In 2014, we as trustee required clients to apprise us of their trust's FATCA compliance status and asked them to confirm the FATCA registration status of each trust for which CIBC Mellon acted as trustee.

Our trustee clients are still responsible for putting in place the due diligence, withholding and reporting procedures identified in the Canada-U.S. IGA (if applicable).

6. CIBC Mellon's expectations of clients: actions and decisions required

1. Work with tax, legal and compliance advisors
2. Identify FATCA IRS classification
3. Complete the FATCA registration portal (if required)
4. For recordkeeping clients, collect and provide client data to CIBC Mellon
5. Complete FATCA W-8BEN, notably where CIBC Mellon acts as Trustee
6. Special note to clients of pension benefit payments services - Client roles and responsibilities
7. Compliance Confirmation form (if required)
8. W-Series forms and legislative updates

a) Work with tax, legal and compliance advisors

The complexity involved in determining FATCA classifications and the detailed nature of the new information required under FATCA (such as on the registration portal and in revised IRS Forms) mean that there are a number of questions in relation to each client's business which only clients themselves can answer. Regulators in Canada and around the world are substantially expanding their expectations related to disclosure and compliance. We urge clients to speak with tax, legal and compliance advisors to help determine FATCA responsibilities and registration requirements for each of their entities. As CIBC Mellon is not able to provide tax, financial or legal advice, the client's advisors are best suited to answer these questions and to advise on the decisions that must be made based on their organizational structure and FATCA classification.

b) Identify FATCA IRS classification

Each client must correctly identify the FATCA classification required for each of its legal entities as this is absolutely critical to determining the entities' specific obligations under FATCA. There are various FATCA classifications, each of which involve very different obligations under FATCA. For example, if an entity is classified as an Exempt Beneficial Owner, the entity will have minimal FATCA obligations. However, if the entity is classified as a Foreign Financial Institution (FFI) - the definition of which appears to be much broader than the name would imply - the entity may be required to identify and document account holders, withhold certain taxes, and report certain information to either the IRS or the local tax authority (depending on the status of an intergovernmental agreement between the IRS and the nation in which the entity is resident).

As noted above, CIBC Mellon is obligated to take certain withholding and reporting actions depending on the FATCA classification that our clients note in the revised IRS Forms that they provide to CIBC Mellon in respect to each of their entities. Therefore, as the FATCA classification will have a significant impact on the client's obligations as well as those of CIBC Mellon, we continue to ask clients to review and confirm FATCA classification and requirements for each of their entities with their tax, financial and legal advisors.

c) Complete the FATCA registration portal (if required)

The IRS secure online portal for certain FIs to register under FATCA opened in August 2013 to allow registrants to investigate and assess the tool. The portal now permits registration. Following discussions with tax and legal advisors, if a CIBC Mellon client is required to register, FATCA registration can be accomplished most efficiently and effectively through the electronic online registration process. Registration is possible via paper forms, however you may experience delays in receiving notice of registration acceptance and obtaining the "Global Intermediary Identification Number" (GIIN) needed to demonstrate FATCA compliance.

The IRS intends to review each registration and then issue approvals; each approved FI will receive a GIIN. The names and GIINs of approved FIs - those not subject to 30 per cent withholding - will be posted on the IRS website on June 2, 2014 and thereafter updated on a monthly basis. The initial deadline to register so as to ensure inclusion on the opening list was April 25, 2014. Certain financial institutions will not be required to provide proof of registration prior to January 1, 2015.

In respect of trusts for which CIBC Mellon acts as Trustee, the settlor or administrator of the trust must confirm to CIBC Mellon by July 1, 2014 whether or not the trust is required to register with the IRS, noting the basis for the determination. If registration is required, the client must provide CIBC Mellon with a GIIN as soon as it's received from the IRS.

Registration requires information, decisions, actions and certifications that only clients can provide CIBC Mellon on behalf of their organization. Therefore, CIBC Mellon is unable to complete FATCA registration on the client's behalf. If one or more of your entities are required to register and fails to do so by the applicable IRS deadline, the IRS may treat it or them as an NPFI and CIBC Mellon will then be obliged to withhold 30 per cent tax on certain US-source income payments and gross proceeds. For more information, please refer to the IRS's FATCA website for FFIs.

d) For recordkeeping clients, collect and provide client data to CIBC Mellon

Responsibility for compliance with know-your-client obligations lies with the entities with direct relationships with a given individual or entity. As a result, CIBC Mellon clients who utilize dealer networks are responsible for gathering information about underlying recordkeeping unitholders, and for providing this data to CIBC Mellon to input into our recordkeeping systems. CIBC Mellon is not responsible for gathering recordkeeping unitholder information: clients with their dealers hold this responsibility.

e) Complete FATCA W-8BEN, notably where CIBC Mellon acts as Trustee

Under FATCA, Form W-8BEN has been significantly expanded. It is much more complex and now requires substantially more detail. Prior to FATCA, this form comprised four segments contained on a single page. In most cases, CIBC Mellon had access to all or most of the information necessary to complete the form for clients Under FATCA, however, Form W-8BEN has now been divided into two separate forms, one for individuals and one for entities. The Form W-8BEN-E for entities is eight pages and 30 parts covering approximately 30 FATCA classifications and related certifications. Significant new information will be required that CIBC Mellon does not have and that only a client can provide. A number of certifications and assurances are also required from CIBC Mellon clients directly. As Trustee, CIBC Mellon will continue to sign W-8 forms on behalf of trusts. In order to do so, we will need clients to supply us with all the necessary information as well as appropriate certifications as to its accuracy. Upon receipt of the information and certifications, CIBC Mellon will process W-8BEN-E forms.

f) Special note to clients of pension benefit payments services - Client roles and responsibilities

With respect to pension benefit payment services, CIBC Mellon does not have any regulatory obligation under FATCA in respect of periodic or lump sum payments which we are directed to disperse to our clients' plan members.

Clients with plans that are considered Reporting Financial Institutions may need to collect U.S. documentation such as W-8 or W-9 from plan participants. Such plans are required to report relevant FATCA data beginning in May 2015. Under the Canada-U.S. IGA, CIBC Mellon understands that there is no withholding at an individual level.

We recommend that clients work directly with their tax, legal and compliance advisors to help determine their FATCA responsibilities for each plan.

g) Trustee clients’ responsibilities

In 2014, we as trustee required clients to apprise us of their trust's FATCA compliance status and asked them to confirm the FATCA registration status of each trust for which CIBC Mellon acted as Trustee.

Our trustee clients are still responsible for putting in place the due diligence, withholding and reporting procedures identified in the Canada-U.S. IGA (if applicable).

h) W-Series forms

As CIBC Mellon has already moved forward with implementation of FATCA and the IGA, we will you are still required to fill out a W-series form for each of your legal entities. It is your responsibility to understand which form(s) you are required to complete, and we recommend that you talk to your tax advisors to determine which form(s) applies to you.

The IRS has released finalized versions of Forms W-9, W-8BEN, W-8ECI, W-8IMY, W-8BEN-E and W-8EXP, and has released instructions for completing these forms.

The U.S. Department of the Treasury and the IRS also provided regulations on the harmonization of Qualified Intermediary (QI) (Chapter 3) and FATCA (Chapter 4) rules on February 20, 2014 and an updated QI agreement. This agreement was also replaced by a revised QI agreement in 2017.

6. Key FATCA Dates:

• January 1, 2019: Withholding on “foreign passthru payments” will become effective the later of January 1, 2019 or the date of publication of the final regulations defining the term “passthru payment." (The proposed regulations further extend the time for withholding on foreign passthru payments. This withholding will now not be required before the date that is two years after the date of publication of final regulations defining the term “foreign passthru payment.”
• January 1, 2019: Withholding on gross proceeds will start January 1, 2019. (The IRS issued proposed regulations to remove this withholding requirement in 2018.)
• January 1, 2017: The final regulations under Section 871(m), which generally apply to transactions issued on or after January 1, 2017, impose U.S. withholding tax on certain amounts arising in derivative transactions over U.S. equities when those amounts are paid to a non-U.S. person.
• December 31, 2016: Sponsored entities that are Model 1 Financial Institutions (FIs) such as Canadian FIs must register by the later of December 31, 2016 or 90 days after a U.S. reportable account is identified.
• December 31, 2016: All existing Qualified Intermediary (QI) agreements expire and the Internal Revenue Service (IRS) is working on an updated version.
• September 30, 2015: For a Model 1 Intergovernmental Agreement (IGA) that is in effect such as Canada's IGA, the IRS will treat FIs as compliant even if the jurisdiction, such as Canada, does not exchange 2014 information by September 30, 2015, so long as the jurisdiction notifies the U.S. Competent Authority prior to that date and assures the U.S. Competent Authority that the jurisdiction is making good faith efforts to exchange the information as soon as possible.
• July 1, 2014: FATCA withholding requirements go into effect. CIBC Mellon will begin withholding 30 per cent tax on certain U.S. source income paid to FFIs that are treated by the IRS as NPFIs.
• April 25, 2014: Last date to register under the FATCA Portal in order to receive a Global Intermediary Identification Number (GIIN) and be included in the opening list of FATCA-compliant FFIs.
• July 1, 2014: Clients that are required to register with the IRS under FATCA should confirm an intent to do so to CIBC Mellon.
• January 1, 2014: FATCA portal opened for registration.
• August 19, 2013: FATCA registration portal opened for investigation.

Contacting CIBC Mellon

In 2014, CIBC Mellon's project team was available to assist clients with understanding FATCA regulations and requirements. Our project team took a very active role as the financial industry endeavours to understand and assess the regulations and provide input for changes to make the requirements more workable. While CIBC Mellon does not provide tax, legal or compliance advice, we continue to be available to discuss FATCA and its potential implications. We would be pleased to assist clients in developing the list of questions to raise with advisors in assessing FATCA requirements. Should you wish to speak with a member of our FATCA project team, or if you have any additional questions, please contact your CIBC Mellon relationship manager.

7. FATCA: Frequently Asked Questions (as at July 31, 2019)

Q1: Will CIBC Mellon complete the new Form W-8BEN-E on my behalf?

A1: Currently for Chapter 3 (QI) purposes, CIBC Mellon continues to complete and sign a Form W-8BEN-E on behalf of those clients where CIBC Mellon acts as trustee. CIBC Mellon does not complete any U.S. tax documentation on behalf of those clients not engaging CIBC Mellon as trustee.

With the introduction of Chapter 4 (FATCA) requirements, each form in the W-8 series has undergone a revision. The new eight-page draft Form W-8BEN-E, used for beneficial owner entity accounts requires an entity to select among approximately 30 FATCA classifications. Depending on the selected classification, the entity may then be asked to complete one of the new FATCA certifications on the form. CIBC Mellon generally does not have access to the required information and is therefore not in a position to confirm specific FATCA classifications of each entity in your organization or to make FATCA elections on your behalf. You must complete the FATCA certification in cooperation with your tax advisors.

When acting as Trustee, CIBC Mellon will continue to sign a W-8BEN-E form on behalf of the trust. You will need to cooperate with CIBC Mellon and your tax advisor(s) to gather the necessary information and to identify the appropriate certifications needed for your organization's specific FATCA classification(s) and to provide the information and certifications as to its accuracy to CIBC Mellon.

Q2: Can CIBC Mellon register my company on the IRS-FATCA registration portal?

A2: No, CIBC Mellon cannot register your company on the IRS-FATCA registration portal. CIBC Mellon encourages all clients required to complete the online FATCA registration with the help of their tax, financial or legal advisors. The registration process requires a financial institution (FI) - which is defined in the regulations or intergovernmental agreement (IGA) - to select their FATCA classification. The decision as to an FI's FATCA classification can only be made through a detailed review of the regulations, any applicable IGA, guidance and the FI's legal structure. Your tax advisors will be best positioned to assess the legal structure of your entity or entities and determine the FATCA classification.

The registration process also requires an FI to identify a Responsible Officer who certifies that the FI will comply with its FATCA obligations in accordance with the terms and conditions reflected in regulations, any applicable IGA, and other administrative guidance to the extent applicable to the FI based on its status in each jurisdiction in which it operates. This Responsible Officer may act as the main point of contact for the IRS on all FATCA related matters. Your tax, financial or legal advisors are best placed to assist you in understanding the duties of the Responsible Officer and in offering guidance as to the appropriate individual to serve in this important role.

Q3: Can CIBC Mellon take care of FATCA obligations on clients' behalf?

A3: No, CIBC Mellon cannot take care of clients' FATCA obligations. Each client needs to undertake a thorough review of each entity's legal structure to fully understand its FATCA classification and need for FATCA registration. As an example, it is our understanding that a Canadian FI with a "Local Client Base" would belong to the 7 "Deemed-Compliant Financial Institution" classifications only if it satisfied 10 defined requirements laid out in Annex II of the Model 1a IGA. The entity's legal, tax or compliance advisor would be best positioned to discuss these specific requirements.

The complexity involved in determining FATCA classification and the unique nature of the information required on the registration portal mean that there are a number of questions in relation to your business which must be answered. Your tax, legal and compliance advisors are best suited to answer these questions and advise you as to the relevant decisions.

Q4: Will CIBC Mellon offer FATCA services as a Sponsoring FFI?

A4: No, CIBC Mellon is not offering FATCA services as a Sponsoring FFI. The consequences attached to non-compliance with FATCA regulations are very significant, and will likely become more significant as additional tax jurisdictions look to take part in the exchange of tax information which is at the heart of certain intergovernmental agreements. Starting July 1, 2014, non-compliance with FATCA could, for some clients, lead to 30 per cent withholding on certain U.S.-source income, including certain sources not currently covered under QI legislation (such as debt obligations).

Due to the complexity of FATCA, the information required to register and the substantially increased risk associated with incomplete or incorrect filings, CIBC Mellon will not undertake the duties of a Sponsoring FFI. CIBC Mellon encourages all clients to speak with their tax, legal and compliance advisors to help determine FATCA responsibilities and registration requirements. The complexity involved in determining FATCA classification and the unique nature of the information required on the registration portal mean that there are a number of questions in relation to your business which must be answered. Your tax, legal or financial advisors are best able to assist you in assessing your organization's requirements under FATCA.

Q5: What FATCA services can CIBC Mellon provide to me?

A5: CIBC Mellon initially did not plan to provide services to its clients related to FATCA registration, documentation, withholding or reporting. We are nonetheless ready and willing to assist you in understanding FATCA requirements. We now provide FATCA (Part XVIII) reporting to the CRA for certain recordkeeping clients.

Q6: What is the first step CIBC Mellon is suggesting that I (as a client) should take?

A6: The first step is to speak to your advisors and determine the FATCA status of each of your entities. Each entity's responsibility under FATCA is dictated by its FATCA classification. If your advisors suggest that you register with the IRS for FATCA, then you will want to begin analyzing the FATCA registration portal and gathering the information you will require to complete registration on the portal.

Q7: What are CIBC Mellon's expectations of me as a client?

A7: (1) For trusts that are required to register with the IRS:

For the trusts where CIBC Mellon acts as trustee, we require you to confirm whether or not you are required to register with the IRS, noting the basis for this determination. If registration is required, you will need to register and provide CIBC Mellon with your GIIN when you receive it from the IRS.

(2) For new entity accounts for both new and existing clients:

Starting July 1, 2014, for any new account opened for a new entity, CIBC Mellon will request documentation of revised W-8/W-9 forms showing FATCA status. Included in this documentation, if required, will be the Global Intermediary Identification Number (GIIN) received upon approval of the registration process.

(3) For entity accounts for existing clients that existed prior to July 1, 2014:

Between July 1, 2014 and June 30, 2016, CIBC Mellon requested revised documentation of W-8/W-9 forms showing FATCA status for each existing entity account. Consistent with the normal renewal process, this request was made prior to the expiration of your current W-8 forms, but no later than June 30, 2016 by which time CIBC Mellon must have received FATCA documentation for all accounts.

A number of clients have asked for clarification on various aspects of FATCA and the registration process. While we are not permitted to provide advice on U.S. tax legislation in any way, we are able to answer our clients' administrative questions with respect to helping them complete their filing.

Below is a list of the most frequently asked questions we have received to date, along with a few additional questions we anticipate you may have moving forward.

Q8: Since our accounts have no investments in U.S. assets, does FATCA apply to us?

A8: It is the legal structure of the entity which determines its FATCA classification and obligations and not its holdings. CIBC Mellon encourages you to review the U.S. Treasury Regulations or the IGA, whichever is applicable to you, and to consult with your tax advisor.

Q9: Where in the Canada-U.S. Intergovernmental Agreement (IGA) can we find information pertaining to Canadian pension plans?

A9: Information pertaining to retirement plans can be found in subparagraph C(1) of section II (page 39) and section IV (page 45) of Annex II of the IGA. Canadian pension plans which meet certain requirements may have some or all of their accounts classified as "Exempt Beneficial Owners" under FATCA and have minimal FATCA obligations. CIBC Mellon encourages you to review Annex II of the IGA with your tax advisor. Here is a link to the Canada-U.S. Intergovernmental Agreement.

Q10: Where in the IGA can we find information pertaining to registered charities or government entities?

A10: Information pertaining to registered charities or government entities can be found in subparagraphs B(4)(d) and B(4)(j) of section VI of Annex I (pages 34-35), and paragraph I of section III of Annex II (page 44) of the IGA. CIBC Mellon encourages you to review the IGA with your tax advisor. Here is a link to the Canada-U.S. Intergovernmental Agreement.

Q11: What does CIBC Mellon require of us as an existing client to confirm our FATCA classification?

Q11a: Where CIBC Mellon is acting as the Trustee:

A11a: In 2014, CIBC Mellon reached out in May to ask you to confirm your FATCA classification and registration status prior to July 1, 2014. We urge you to speak with your tax, legal and compliance advisors to help determine your FATCA classification and registration requirements if you are a new entity. If you are required to register with the IRS, you will be responsible for completing such registration.

In 2014, as trustee, CIBC Mellon completed a Form W-8BEN on behalf of a trust; however, significant new information are now required to complete the Form W-8BEN-E that only you can provide. Therefore, we will require you to provide us with all the necessary information as well as appropriate certifications as mandated on the Form W-8BEN-E.

Q11b: Where CIBC Mellon acts solely as your Custodian:

A11b: CIBC Mellon requires custody clients to submit a completed Form W-8 at the time their current document expires identifying the client's FATCA classification, and if applicable, their Global Intermediary Identification Number (GIIN).

Q12: What is the current status of the FATCA legislative landscape? When can we expect to receive everything needed to implement FATCA?

A12: The Canada-U.S. IGA was released on February 5, 2014 and is a signed and completed document. The CRA has released its guidance which is now available on the CRA website.

The IRS released a revised Form W-8BEN-E and Instructions in 2017. The IRS has also released latest versions of Form W-9 and the remaining W-8 forms.

Q13: Will CIBC Mellon act as Sponsoring Entity on our behalf?

A13: CIBC Mellon will not take on the role of Sponsoring Entity on your behalf. This was not an easy decision on our part; however, we understand that our decision is in line with decisions of the other custodians in the Canadian market. The sponsoring entity undertakes the responsibility of providing all FATCA services on behalf of another Financial Institution (FI). When looking at the FATCA status and registration obligations of the FI, CIBC Mellon does not have the information on file to make these decisions on behalf of our clients.

With regards to the documentation and classification of the underlying beneficiaries of your accounts, CIBC Mellon does not have the direct relationship required to solicit information and documentation from your account holders in order to complete this exercise.

Q14: Will CIBC Mellon be FATCA compliant?

A14: CIBC Mellon has registered with the IRS as a Registered Deemed-Compliant Foreign Financial Institution (RDCFFI), termed a Reporting Model 1 IGA Financial Institution in the Canada-U.S. IGA. As a RDCFFI, CIBC Mellon has committed to being compliant with the terms of the Canada-U.S. IGA and the CRA guidance, including all due diligence, withholding and reporting requirements on our account holders.

Q15: Are Retirement Compensation Arrangements (RCA) considered exempt under the Canada-U.S. IGA?

A15: CIBC Mellon is not able to provide tax, financial or legal advice. Clients' tax advisors are best suited to answer this question. From what we understand, the CRA has provided guidance on how to classify RCAs in its Guidance on the Canada-U.S. Enhances Tax Information Exchange Agreement.

Q16: What was the FATCA initial registration deadline for Canadian financial institutions?

A16: The deadline for Canadian financial institutions to register with the IRS in order to be included on the first IRS FFI list was extended to May 5, 2014. However, under the registration guidance released by the IRS, many Model 1 IGA Financial Institutions were not required to register and receive a Global Intermediary Identification Number (GIIN) prior to January 1, 2015. In order to be included on the list for January 1, 2015, a financial institution must register prior to December 22, 2014.

Q17: Where can I go to get more information on FATCA and the FATCA requirements?

A17: Please see below for important links to FATCA-related information:

• Canada-U.S. Intergovernmental Agreement
• IRS FATCA website including the IRS registration portal and registration guide
• Guidance on the Canada-U.S. Enhances Tax Information Exchange Agreement

Q18. Where can I go to get more information on the CRA guidance?

A18: The CRA has released its FATCA guiding document. Please see below the link to this document:

• Guidance on the Canada-U.S. Enhances Tax Information Exchange Agreement

Q19. Has the CRA provided any guidance on how to classify RCAs?

A19: The CRA has provided guidance on how to classify RCAs in its Guidance on the Canada-U.S. Enhances Tax Information Exchange Agreement.