MFA Submits Comment Letter to FinCEN on Proposed Rulemaking on Beneficial Ownership

MFA submitted a comment letter to the Financial Crimes Enforcement Network (FinCEN) in response to its Proposed Rulemaking on Beneficial Ownership Information Reporting Requirements. In the letter, MFA suggests that FinCEN make the following clarifications and changes to the proposed rule:

  • Clarify that the “reporting company” exemption for PIVs covers entities that are owned by one or more entities or accounts operated or advised by registered investment advisers (“RIAs”), i.e., investment advisers registered with the SEC, and certain single investor funds.
  • Clarify that the RIA exemption includes vehicles used by an RIA to serve as general partners or managing members for PIVs advised by the RIA.
  • Exclude from the reporting company definition (a) any legal entity “up the chain” of an RIA or a PIV whose owners are disclosed in the Form ADV of the RIA, and (b) any commodity pool operated or advised by a commodity trading advisor or commodity pool operator (“CPO”) registered with the CFTC.
  • Clarify which individuals should be identified as company applicants, as well as how far back a company should go to report such information;
  • Provide reporting companies additional time to comply with the BOI reporting requirements.
  • Clarify that the statutory safe harbor for persons who inadvertently report inaccurate information to FinCEN is not exclusive, and that it applies if a corrected report is filed within 90 days from the date on which the reporting company becomes aware or has reason to know the required information contained in any report it filed was inaccurate when filed and remains inaccurate.