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#2168189 - 03/14/18 07:05 PM Beneficial Ownership - 401k Plan
BSAN3rd Offline
Junior Member
Joined: Sep 2016
Posts: 32
Hi all,

Glad to see I'm joining the chorus of questions on Beneficial Ownership.

We have a legal entity who is opening up a new account with us. The legal entity is "ABC Corpopration 410k Plan" and it has its own EIN. It is a separate entity from "ABC Corporation" itself. The question came up about whether or not UBO is required.

My first inclination is to have the account relationship manager obtain Natural Person Opening the Account and Control Prong; skipping Beneficial Ownership as it does not appear that it applies. However, I am wondering if the rule applies to this type of entity at all. Is it considered a Pooled Investment Vehicle?

Any help is appreciated!

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#2168244 - 03/14/18 08:11 PM Re: Beneficial Ownership - 401k Plan BSAN3rd
Elwood P. Dowd Offline
10K Club
Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
Under ERISA, a qualified retirement plan is a trust, held by a trustee. The beneficial ownership regulation does not apply to trusts.

ERISA also has a specific list of entities that are eligible to serve as trustees, among them, banks. If the trustee is a bank, then it's the bank opening the account and banks are excluded from the definition of legal entity customer. (Not partially excluded, excluded.)

In a previous thread another BOLer reported that the Helpline said to identify an employee of the bank trust department as the control person. I suggest you call the Helpline and see what they tell you.
In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.

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