The UABs® structure allows investors to invest in a portfolio of securities through one bond, that is less onerous and less expensive than developing a trust solution.
- The UAB® has potential applicability to anyone working to meet FATCA, CRS, or confidentiality needs.
- Universal Access Bonds are constructed as special purpose vehicles and qualify as a Section 110 Company under Irish law. UAB® investors own an Irish Stock Exchange listed debt security which provides investor is access to an underlying UCITS fund.
- The value of the UAB® is directly related to the value of the underlying fund. Subscriptions and redemptions occur monthly, through Euroclear.
- Liquid/Transferable – The UAB® directly feeds assets into its target fund, without compromising the underlying fund, while also ensuring robust tax reporting is made to the various regimes demanding the information.
- Compliant – Allows Investors to take on the responsibility of reporting , eliminates the conflicts and remains compliant with relevant US and Irish tax/legal legislation and regulation.
THE UAB® STRUCTURE
UAB® PLC is considered a Passive Foreign Investment Company (“PFIC”), with the QEF election option, for U.S. federal income tax purposes.
The value of the UAB® is directly related to the value of the underlying fund. Subscriptions and redemptions occur monthly, through Euroclear.
From a taxation perspective, the capital gains and income of the underlying fund are transparent, and our reporting allows the investor to be fully compliant with their individual tax reporting in multiple jurisdictions. .
SPECIAL PURPOSE VEHICLE (SPV)
UABs are structured as an Irish special purpose company, established under Section 110, TCA 1997. Section 110 is at the heart of Ireland’s structured finance regime. It allows for organizations to achieve a neutral tax position provided certain conditions are met. This regime, which has been in existence since 1991, is widely used and internationally regarded.