BC143 The Board decided that an investor should, when assessing control, consider the nature of its relationships with other parties. An investor may conclude that the nature of its relationship with other parties is such that those other parties are acting on the investor's behalf (they are 'de facto agents'). Such a relationship need not involve a contractual arrangement, thereby creating a non‑contractual agency relationship. The Board concluded that a party is a de facto agent when the investor has, or those that direct the activities of the investor have, the ability to direct that party to act on the investor's behalf. [In July 2024 the IASB issued Annual Improvements to IFRS Accounting Standards- Volume 11, which amended paragraph B74.]

BC144 ED 10 included a list of examples of parties that often act for the investor. The Board's intention was that an investor would look closely at its relationships with such parties and assess whether the party is acting on behalf of the investor.

BC145 Some respondents said that the list of examples of parties that often act on behalf of an investor was not helpful because they could think of circumstances in which it would be appropriate to regard each of the parties as agents of the investor and other circumstances when it would not. Respondents were unclear about the consequences of concluding that a party acts for an investor.