Glossary. Canadian Financial Institution

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1 Glossary Active Non-Financial Foreign Entity (ANFFE) Canadian Financial Institution Controlling Persons Deemed Compliant Foreign Financial Institution Excepted Foreign Financial Institution (EFFI) Exempted Beneficial Owners Foreign Financial Institution (FFI) Global Intermediary Identification Number (GIIN) Non-Financial Foreign Entity (NFFE) Non-Participating Foreign Financial Institution (NPFFI) Participating Foreign Financial Institution (PFFI) Partner Country Financial Institution Passive Non-Financial Foreign Entity (PNFFE) Pending Relationship Manager Reporting Canadian Financial Institution (RCFI) Self-Certification Form Specified US Person Taxpayer Identification Number (TIN) U.S. Indicia U.S. Person Form W-8/W-9 Active Non-Financial Foreign Entity (ANFFE) Active Non-Financial Foreign Entity (Active NFFE) means any NFFE that meets the criteria found Annex I of the Canada US Intergovernmental Agreement (IGA). Canadian Financial Institution A Financial Institution that is resident in Canada, but excluding any branch of such Financial Institution that is located outside Canada, and any branch of a Financial Institution that is not resident in Canada, if such branch is located in Canada and that meets the two conditions contained in section 3.19 of the CRA Guidance.

2 Controlling Persons The IGA defines the term as the natural persons who exercise control over an entity. In the case of a trust, such term means the settlor, the trustees, the protector (if any), the beneficiaries or class of beneficiaries, and any other natural person exercising ultimate effective control over the trust; and in the case of a legal arrangement other than a trust, such term means persons in equivalent or similar positions. See sections of the CRA Guidance. As a practical matter for MFDA dealers, in the case of a trust, it would mean all the trustees and all known beneficiaries and settlors. For corporations, it would mean all directors of the corporation and any person who owns, directly or indirectly, 25% or more of the shares of the corporation. Deemed Compliant Foreign Financial Institution Non-Reporting Canadian Financial Institutions that fall into the following categories with criteria outlined in the Annex II, Section III of the IGA: Financial Institution with a Local Client Base Local Bank. Financial Institution with Only Low-Value Accounts Sponsored Investment Entity and Controlled Foreign Corporation Sponsored, Closely Held Investment Vehicle Restricted Funds And other specified entities found in the IGA For more information, see Sections of the CRA Guidance. Excepted Foreign Financial Institution (EFFI) The term excepted FFI means an entity that is excluded from the definition of an FFI, pursuant to (e)(5), and is not subject to withholding under section 1472, pursuant to (c)(1)(vi). (FATCA IRS Final Regulations) Exempt Beneficial Owners Exempt Beneficial Owners are Non-Reporting Canadian Financial Institutions and include: The Bank of Canada; A Canadian office of an international organization as defined under paragraph (1) of Section 2 of the Foreign Missions and International Organizations Act; Any plan or arrangement established in Canada and described in paragraph 3 of Article XVIII (Pensions and Annuities) of the Convention; and An investment Entity Wholly Owned by Exempt Beneficial Owners (IGA p. 39) A full list of Exempt Beneficial Owner s is available in the Annex II, Section II of the IGA and Section (b) to (g) of the U.S. Treasury Regulations.

3 Foreign Financial Institution (FFI) Generally, a non-u.s. depository institution, custodial institution, investment entity, insurance or holding company, or treasury center. Global Intermediary Identification Number (GIIN) An identification number assigned by the U.S. government, which would be used for both reporting purposes and to identify the Foreign Financial Institution to U.S. withholding agents. Non- Financial Foreign Entity (NFFE) Any non U.S. entity that is not a financial institution is a NFFE. Any entity resident in Canada that is not a NFFE is a reporting Canadian Financial Institution or a non-reporting Canadian Financial Institution. Any entity that is not a resident of Canada is a Financial Institution (FI) if it is classified as such in its jurisdiction of residence. Non-Participating Foreign Financial Institution (NPFFI) A non-participating FFI, as that term is defined in relevant U.S. Treasury Regulations, but does not include a Canadian Financial Institution or other Partner Jurisdiction Financial Institution other than a Financial Institution treated as a Nonparticipating Financial Institution pursuant to subparagraph 2(b) of Article 5 of this Agreement or the corresponding provision in an agreement between the United States and a Partner Jurisdiction. (IGA) Non-Reportable (Status) A financial account that is not identified as a Reportable Account is a Non-Reportable Account. Participating Foreign Financial Institution (PFFI) Participating FFI means an FFI with respect to which an FFI agreement is in full force and effect. Partner Jurisdiction Financial Institution (PJFI) Any Financial Institution that is established in a Partner Jurisdiction (with an IGA in effect), but excluding any branch of such Financial Institution that is located outside the Partner Jurisdiction, and (2) any branch of a Financial Institution that is not established in the Partner Jurisdiction, if such branch is located in the Partner Jurisdiction. (IGA)

4 Passive Non-Financial Foreign Entity (PNFFE) Is an NFFE that is not an Active NFFE or a withholding foreign partnership or withholding foreign trust pursuant to relevant U.S. Treasury Regulations. (IGA) Pending The status of the client at account opening is unknown or there is a change is circumstance. Refuse to Respond (Status) A Refuse to Respond status is an account whereby the dealer and/or manufacturer have exhausted attempts to identify the status of the client(s) and decline to respond. Reportable (Status) A financial account is a U.S. reportable account if it is identified as being held by one or more specified U.S. persons or by a passive NFFE with one or more controlling persons who are individuals that are U.S. citizens or U.S. residents. Relationship manager A relationship manager is an officer or an employee of a financial institution who regularly and continuously oversees and manages the financial accounts of their clients. See sections of the CRA Guidance for more details. Reporting Canadian Financial Institution (RCFI) Any Canadian financial institution that is not a non-reporting Canadian financial institution. Self-certification form A document used by account holder to certify its status under the IGA or U.S. Treasury Regulations, as applicable. IRS Forms W-8 and W-9or industry developed forms may be used as self-certification. A self-certification must result in a clear declaration from the account holder as to whether they are specified U.S. persons. Specified US Person Specified U.S. Person means a U.S. Person, other than entities listed in Article 1, Section 1 (ff) of the IGA.

5 Taxpayer Identification Number (TIN) Refers to either a U.S. or Canadian taxpayer identification number, such as the U.S. Social Security Number (SSN) or the Social Insurance Number (SIN) for Canadian persons. U.S. indicia U.S. indicia: Possible indicators of U.S. person status that are identified when applying due diligence procedures to Individual accounts only. It is expected that financial institutions will provide account holders with an opportunity to cure U.S. indicia within reasonable timeframe. They may include: Individual: U.S. citizenship or residency U.S. birthplace Current U.S. residence or mailing address, including a U.S. post office box Current U.S. telephone number Standing instructions to pay amounts to an account maintained in the U.S. Currently effective power of attorney or signatory authority granted to a person with a U.S. address An "in care of" or "hold mail" address that is the sole address on file for the account holder U.S. person Is defined in Article 1, Section 1 (ee) as 1) an individual who is a U.S. citizen or a U.S. resident alien; 2) a corporation or partnership organized in the U.S. or under the laws of the U.S. or a U.S. state; 3) a trust where a U.S. court is able to exercise primary supervision or where one or more U.S. persons have authority over all substantial decisions; or 4) an estate subject to U.S. tax. Account holders should refer to guidance available on the IRS website for more details. Forms W-8/W-9 Form W-8 An IRS form that permits non-u.s. persons to certify that they are not a U.S. person and allows them to be exempted from certain U.S. tax information returns, and to determine eligibility for certain reductions from withholding tax regulations on certain payments received based on treaty benefits. The W-8 series of forms have been updated to allow users of the forms to also provide FATCA status information. Form W-9 An IRS form used by individuals who are U.S. persons to provide their U.S. taxpayer identification number (TIN) and to certify their status. FATCA Final Regulations: Canada U.S. IGA: