10. What does 'managed by' mean in terms of an investment entity being managed by another financial institution?

An entity is 'managed by' another entity if the managing entity performs, either directly or through another service provider on behalf of the managed entity, any of the activities or operations described in the definition of 'investment entity'* under the first type of entity*.

An entity manages another entity only if it has discretionary authority to manage the other entity's assets (either in whole or part).

Where this managed entity is located in a non-participating jurisdiction* and managed by another financial institution, it is treated as passive non-financial [foreign] entity (passive NFE)*.

*For any defined terms please see the Table of terms and definitions.