Hopefully, if this form filing is applicable to your firm, you’ve already sent it in. It’s due on August 30. The penalty for failing to submit the form is a civil penalty of not less than $2,500 and not more than $25,000.
The form is required if your firm was the recipient of a mailing of the form or if you have more than $100 million in foreign investors in your fund.
The filing is part of a mandatory survey conducted under the authority of the International Investment and Trade in Services Survey Act (22 U.S.C. 3101) and Executive Order 11961 of January 19, 1977. The Act specifies that the authority to secure current information on international investment, including (but not limited to) such information as may be necessary for computing and analyzing the balance of payments accounts and the international investment position of the United States.
This report collects information on securities issued by U.S.-residents that are owned by foreign residents, including U.S. equities (including shares in funds), U.S. short-term debt securities (including selected money market instruments), U.S. long-term debt securities, and U.S. asset-backed debt securities.
The standard includes foreign ownership of private funds. Often foreign investors use blockers of domestic subsidiaries to invest. The form’s instructions indicate that you can use the standard of whether the investor gave you a W-8 instead of a W-9 to determine that the investors is “foreign.”
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