SPDF Group Newsletter May 2019

Dutch Funds FGR

The FGR is a pooled investment vehicle offering substantial flexibility to the user. The FGR can be used as a vehicle for both institutional and retail investment funds and for asset pooling. FGRs can be structured as (semi) open-end and closed-end funds. FGRs can also be structured as an umbrella fund and participations in FGRs can be listed on NYSE  Euronext Amsterdam.

The FGR is not a legal entity. It is created by agreement (often referred to as the `Terms and Conditions’) between the manager (‘Manager’), the depositary (`Depositary’) and one  or more investors (‘Participants’) which obliges the manager to invest and manage for the joint account of the Participants.

Usually, the legal ownership of the FGR assets is held by a separate Depositary.

The FGR can be structured as tax transparent for Dutch tax purposes or qualify for the status of exempt investment institution or fiscal investment institution.

If properly structured, an FGR is considered a transparent entity for Dutch corporate income and dividend withholding tax purposes (a so-called ‘closed FGR’) and is therefore not subject to Dutch corporate income and dividend withholding tax. The tax transparency requires the following restrictions

LEI Registration

Why Do You Need a Legal Entity Identifier?

A Legal Entity Identifier (or LEI), is a 20-character identifier that identifies distinct legal entities that engage in financial transactions. It is defined by ISO 17442 standard, endorsed by the G20 and is intended to be “the one identity behind every business”. The LEI is a global standard, designed to identify legal entities involved in financial and other corporate transactions of value. The standard delivers greater marketplace transparency for market regulators with identity reporting requirements such as MiFID II, MiFIR & EMIR, and is designed to be non-proprietary and freely accessible data.

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