Foreign Account Tax Compliance Act (FATCA) information

On 08 April, 2014. Latvian and US governments has agreed and signed intergovernmental agreement (bilateral agreement between U.S. government and a Latvian State Revenue Service that facilitates compliance with FATCA), commonly known as FATCA (Foreign Account Tax Compliance Act) to prevent tax – evasion by residents of Latvia and United States of America, holding foreign accounts or offshore investments.

Under the new FATCA regulations, all Latvian financial institutions (banks, investment brokerage firms, payment institutions, insuarance companies etc.) must identify and document existing and new clients starting from September 30, 2015 which are US account holders as well as entities under U.S. control (U.S. persons having a substantial ownership interest in the entity) and via Latvian State Revenue Service provide to US IRS with information on their capital gain, assets, trading activities with financial instruments during the fiscal year.

In accordance with intergovernmental agreement (as per Model 1 IGA – Renesource Capital AS IBS will comply under local Latvian legislation and report to Latvian State Revenue Service. Latvian State Revenue Service will exchange information with U.S. IRS)

U.S. IRS will provide with the same level of information Latvian State Revenue Service on Latvian persons holding foreign brokerage/ trading accounts with banks and brokerages in U.S.

Renesource Capital AS IBS shall not provide any advice to the Client or potential Client on any tax issue related to any investment services provided to the Client by Renesource Capital AS IBS. The Client is advised to obtain individual and independent counsel from its financial advisor, auditor, legal counsel or tax professional of the respective services.

For more detailed FATCA information please visit:

•             U.S. Department of Treasury website: http://www.treasury.gov/resource-center/tax-policy/treaties/Pages/FATCA.aspx

•             U.S. IRS website: http://www.irs.gov/Businesses/Corporations/Foreign-Account-Tax-Compliance-Act-FATCA

•             Cabinet of Ministers of Republic of Latvia website: http://www.mk.gov.lv/lv/mk/tap/?pid=40319276&mode=mk&date=2014-04-08

Please be aware that Renesource Capital AS IBS has implemented the requirements in accordance with FATCA regulations and respective Latvian laws and are fully committed to providing the required FATCA information under the intergovernmental agreement in order to help combat tax evasion. Thereby in case if clients data provided to Renesource Capital AS IBS will match the criterias of FATCA, Renesource Capital AS IBS will require additional information to be provided as well as confirming information in documentary form without breaching national data protection law.

Risk Disclosure Statement. Margin transactions (Forex, contracts for difference CFD, futures and futures options, stock options, REPO transactions, transactions in over-the-counter derivatives and transactions using broker credit, including selling short) involve higher risk. The level of risk increases with the leverage ratio. As the result of margin transactions, relatively high profits are possible with low level of initial investments, as well as significant losses which may exceed the principal amount of investments or the amount of the collateral. Please ascertain whether margin transactions in their essence and content suit the risk profile that was assigned to you by AS IBS Renesource Capital and whether the content of margin transactions corresponds to your investment goals.

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