A sponsoring entity cannot change its FI Type. Unlike other types of financial institutions (FIs) such as single, member, or lead, a sponsoring entity must create a new FATCA Registration account if it needs to change its FI Type to single, lead, or member. If the sponsoring entity account is no longer needed, the entity must follow the process to cancel the agreement if it is in approved status.
Sources:
§ 1.1471-1. Scope of chapter 4 and definitions.
Publication 5118 (07/2021)
Instructions for Form 8957 (06/2018)
