Chapter IEIM401700

Published date25 April 2016
Record NumberIEIM401700
Financial Accounts: Equity and Debt Interests

Equity and debt interests are financial accounts only to the extent that they are interests in an Investment Entity [link IEIM400760].

Where an entity is an Investment Entity solely because it acts on behalf of a customer by investing, managing or administering financial assets in the name of the customer, the debt and equity interests in the Investment Entity are not financial accounts provided it only renders investment advice to, or manages portfolios for, the customer.

An equity interest may vary depending on the nature of the Investment Entity. In the case of an Investment Entity that is a partnership an equity interest is either a capital or profits interest in the partnership.

In the case of a trust an equity interest is any interest held by a person who is treated as a settlor or...

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