A beneficial owner, or ultimate beneficial owner (UBO), is the natural person who ultimately owns or controls an entity investor, typically anyone holding more than 25% (10% in some regimes) or otherwise exercising control. Funds must identify and verify beneficial owners as part of KYC.
Beneficial-ownership rules exist so that companies, trusts and funds cannot be used to hide who is really investing. The administrator collects ownership charts down to natural persons, verifies each one's identity and screens them for sanctions and PEP status.
Investors that are themselves regulated funds or listed companies are usually subject to simplified checks.
Entity investors on POD provide beneficial-owner information as part of verification. [CONFIRM: POD's beneficial-ownership threshold.]
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