On FATCA and UBO forms circulated by funds | Value Research No further transactions (except redemptions) will be allowed from 1st January 2016 if declaration is not submitted before 31st December 2015
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On FATCA and UBO forms circulated by funds

No further transactions (except redemptions) will be allowed from 1st January 2016 if declaration is not submitted before 31st December 2015

I am surprised that Value Research is silent on FATCA and UBO forms circulated by mutual funds. Can you let us know more about the FATCA and UBO? Also, do I need to submit FATCA and UBO form for each folio as well as separately for different mutual funds, please advise. This has created a lot of confusion among investors like us as we are not sure if our fresh SIP or renewal of SIPs will be honoured by the fund house.
- Sathish C

Our editor - Mr. Dhirendra Kumar had written on this issue nearly three weeks back: If KYC is good, then more KYC must be better, right?. We have also covered in other articles and Ask ValueResearch answers. Here are afew for your refernce: What Fatca requirements mean for your mutual fund investments, Does the FATCA law affect only US NRIs?

Here is a detailed explanation for your reference:
AMFI has asked AMCs to adhere to the following requirements from November 1, 2015:

  1. All new investors to provide additional KYC details - income slab, occupation, net worth, politically exposed status, etc.,
  2. All new non-Individual investors to provide the Ultimate Beneficial Ownership (UBO) details.
  3. All investors to submit FATCA/CRS declaration while opening account from 1st November 2015 and also for all the new accounts opened after 1st July 2014 to 31st October 2015.

Similarly, from 1st January 2016 all mutual funds have been advised to make it mandatory for existing investors to:

  1. Provide additional KYC details as mentioned above in order to make additional purchases (including switch) in their MF accounts
  2. Provide missing details and complete IPV (In-Person Verification) for all CVL-MF cases
  3. Update the Ultimate Beneficial Ownership (UBO) details in their existing accounts

Forms are available at the counters or can be downloaded from the websites of mutual funds or from the website of their transfer agents like cams, karvy. All investors (both individuals and entities) must fill-up the applicable FATCA-CRS Declaration and Supplementary KYC Information and UBO Declaration Form and submit it to mutual fund transfer agencies like CAMS, Karvy or AMC branches for update.
If declaration is not submitted before 31st December 2015, investors won't be able to carry out any transactions (except redemptions) from 1st January 2016.


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