The tax classification of the common account fund (CIS) is a topic that has long attracted the attention of fund managers and institutional investors. But since Jan. 1, 2025, the scope of the new FGR definition has been significantly expanded and (foreign) partnerships may also potentially qualify as FGRs. In addition, an important new dimension has been added: the assessment framework has been expanded to include a regulatory test. This makes the matter more complex, and the need to be well informed greater, also because of the potentially large consequences. The classification rules are relevant to a broad group of DUFAS members: from fund managers to pension funds, insurers and fund-of-funds, and both Dutch and non-Dutch investment funds. Moreover, solutions often have a direct impact on fund documentation, so the civil law side is also fully involved.
Together with Loyens & Loeff, we are organizing a seminar at their office in Amsterdam on Thursday morning, June 11, where we will discuss this topic from all angles. Specialists Michiel Beudeker and Quinten Baars (tax), Roderik Boogaard and Joyce Kerkvliet (regulatory) and Michaël Maters (civil) will take us through the relevant developments during the meeting and discuss what they mean in practice. The following topics, among others, will be discussed:
- the new review framework and the operation of the regulatory test;
- The civil law implications for fund documentation and structuring; and,
- practical implications for fund managers and institutional investors