Reporting

The list below outlines our primary Reporting Services. Given the continually evolving and rapidly changing landscape of regulatory reporting requirements worldwide, this list is continually expanding. Our focus centers on providing reporting solutions for institutions with cross-border exposure to the U.S. market. Therefore, you will find reporting services that enable compliance with the regulations of various U.S. federal agencies, including the IRS, SEC, and CFTC.

Since 2017, PQS has expanded its offerings to include CRS reporting, a requirement for banks, trustee-documented trusts, professionally managed investment entities, and other entities designated as reporting institutions. Additionally, we anticipate offering reporting services in the crypto assets sector in conjunction with the Crypto-Asset Reporting Framework (CARF) upon its incorporation into local law in the coming years.

QI Reporting

Our QI/WP/WT Reporting Services encompass a wide range of offerings, from simply uploading electronic Forms 1042-S as a transmitter on behalf of a QI, WP, or WT, to assuming full responsibility for all reporting-related activities, including transaction reconciliation and the preparation of all required forms.

More than 130 Qualified Intermediaries, Withholding Partnerships, and Withholding Trusts worldwide rely on our QI Reporting Services. We offer three distinct levels of QI/WP/WT reporting services:

• Transmitter Service: PQS is an IRS-registered Third-Party Transmitter eligible to upload text-based Forms 1042-S on the IRS FIRE portal. With the transmitter service, we assist intermediaries by formally reviewing their Form 1042-S electronic text files and uploading them as needed.

• Reporting Service: This service involves conducting a form-based reconciliation, creating the Form 1042-S and 1042, and subsequently filing the Forms with the IRS on behalf of the QI. We ensure compliance with all deadlines and technical specifications. This Reporting Service also encompasses the services provided in the Transmitter Service.

• Reconciliation Service: Our all-inclusive managed service includes a thorough transaction-based reconciliation throughout the reporting process, typically performed on a quarterly basis. We generate Forms 1042-S and 1042 based on the final reconciliation, manage all amendments, and ensure that all steps necessary to produce a reconciled 1042-S and 1042 report are completed. This service includes the benefits of both the Transmitter and Reporting Services.

Since the introduction of FATCA, an increasing number of QIs have begun reporting reportable payments made to U.S. non-exempt account holders, often pooled via Forms 1042-S, to the recipient "Chapter 4 Pool of U.S. Payees." However, certain exceptions do not permit payments to be reported via a Chapter 4 Pool of U.S. Payees. To help with this, we are capable of preparing 1099 Forms in accordance with regulatory standards. As an IRS-registered Third-Party Transmitter, we can also upload Forms 1099 onto the IRS FIRE portal.

As an additional service, we provide the preparation and validation of the Form 945, as required for backup withholding on U.S. reportable amounts.

FATCA Reporting

Many FATCA Foreign Financial Institutions, such as Banks, Brokers, Trustees, Family Offices and Asset Managers are faced with increasing technical and quantitative challenges that the FATCA reporting requirements bring.

Since the inception of FATCA, we have been providing support for the creation and transmission of FATCA Reportings for over 50 FFIs. As an official "Third Party Preparer", PQS can directly file FATCA Reports with the IRS on an FFI's behalf.

Our FATCA Reporting Services include:

• Preparing the XML-files based on a template the FFI provides to us. We prepare XMLs according to the IRS XML-schema or any schema mandated by a Model 1 jurisdiction.

• Encrypting the XML using PQS's certificates.

• Uploading the XML on the IRS's IDES platform or the respective country's portals.

• Performing data quality and plausibility checks to ensure account holders are reported correctly.

For many banks, we perform the FATCA reporting services by using the existing system infrastructure in place. Especially in combination with PQS's Compliance Services, the benefit PQS can provide in ensuring accurate, complete and formally correct FATCA reporting is invaluable.

Trustees and family offices, often facing reporting requirements from multiple jurisdictions, particularly benefit from PQS as a one-stop-shop service provider.

FATCA Group Requests

Since 2020, the Swiss Federal Tax Administration (SFTA) has been enforcing requests from the U.S. Justice Department, which can seek information on all accounts reported by Swiss financial institutions in aggregated form since 2015. These Group Requests entail various technical and content specifications, including specific encryption of the information packages.

We maintain direct communication with the SFTA's responsible team and handle Group Requests with minimal required input from our clients on an annual basis. Many of our clients entrust us with both their FATCA reporting and FATCA group request reporting, often combined with our CRS reporting services (see below).

CRS Reporting

The Common Reporting Standard (CRS) mandates that jurisdictions gather information from their financial institutions and annually exchange this information with other jurisdictions. As the standard continues to evolve, with more jurisdictions joining the exchange of information each year, Reporting Financial Institutions face challenges concerning their annual CRS reporting.

Our CRS Reporting Services includes:

• Preparing Reporting XML files based on a template provided by PQS and completed by the FI. We ensure compliance with the OECD-XML schema, taking into account any jurisdiction-specific requirements.

• Reviewing XML files prepared by the client.

• Encrypting the XML data according to industry standards.

• Uploading the XML files to CRS reporting platforms in various jurisdictions.

• Submitting Nil Reports where necessary.

• Conducting data quality and plausibility checks to ensure accurate reporting of accounts and account holders.

• Tracking all FIs to ensure complete and punctual annual reporting, particularly beneficial for trustees or family offices.

For many FIs, especially banks, we have direct access to system infrastructure, allowing us to handle all aspects of CRS reporting. Particularly when combined with PQS's Compliance Services, our expertise in ensuring accurate, comprehensive, and formally correct CRS reporting is invaluable.

As CRS reporting may involve various platforms based on the domicile jurisdictions of reporting entities, trustees and family offices especially benefit from PQS as a one-stop-shop service provider.

Many of our clients who entrust us with their CRS reporting also combine it with our FATCA reporting service and FATCA group request service (see above).

Other Reportings

1099 Substitute Forms

With the introduction of the Chapter 4 U.S. Payee Pool, many banks no longer issue or file 1099 forms for their U.S. clients. As many U.S. individuals rely on 1099 Forms to complete their annual tax returns, clients often receive requests from account holders seeking income information for tax reporting purposes.

We can create Substitute 1099 Forms that do not qualify as official 1099 forms and therefore are not filed with the IRS. However, these substitutes meet all the requirements of an official 1099 Form.

US Tax Statements

U.S. account holders require specific information to meet their tax return obligations with the IRS. This includes details such as total U.S. and non-U.S. sourced income, gains or losses from trades involving U.S. and non-U.S. securities, a summary of bank fees debited, and the highest account balance for FBAR filing. PQS can analyze and validate transaction data from the client's account to condense it into a U.S. tax statement using a white-label solution.

Filings for SEC registered investment advisers

Form ADV (incl. Form CRS)

Investment advisers file Form ADV to register with the SEC and/or their respective states. They are required to update this form annually (the "Annual Amendment") and when certain triggering events occur (the "Other-than-Annual Amendments"). Additionally, investment advisers providing services to retail investors must file Form CRS. We assist clients in preparing Form ADV and Form CRS.

Form U4 (Registration) /U5 (Deregistration)

SEC-registered investment advisers must register their representatives, known as "Investment Adviser Representatives," using Form U4 in the appropriate jurisdictions or states. We can provide support for the registration and deregistration of these representatives on behalf of our clients.

Form 13F

Form 13F must be filed quarterly by registered investment advisers who exercise investment discretion over $100 million or more in Section 13(f) securities. Our services include monitoring the filing threshold and handling the quarterly filing process.

Many of our clients combine the PQS Reporting Services with some of PQS's Compliance Services to benefit from unique synergy effects. For example, a QI may opt to have our compliance team review the forms provided by a client before a treaty basket has been assigned.

For most of our Services, an exchange of data is required. We are able to provide a secure collaboration platform in order to exchange such data between our and clients' organizations. We also accept any secure exchange medium solution you prefer.