bulletEDITOR'S PICKS

 

FCA slaps four and a half month ban on adviser network

From United Kingdom Jul 23 2014 @ 17:09

Using its suspension powers for the first time, the Financial Conduct Authority has banned two...
view article

Pension flexibility extended but advice restricted to FCA regulated firms

From Retirement Jul 21 2014 @ 16:46

Increased flexibility on pensions announced in the UK Budget earlier this year will be extended...
view article


bulletRELATED ARTICLES

 

bulletNEWS

 

LATEST NEWS

Montello gets regulatory nod for another property fund in Singapore

Montello gets regulatory nod for another property fund in SingaporeUK-based real estate financier Montello has received the go-ahead from the...
view article

Ireland introduces voluntary code for fund...

From Europe Jul 23 2014 @ 17:14

FCA slaps four and a half month ban on adviser...

From United Kingdom Jul 23 2014 @ 17:09

MORE FROM Products

LATEST NEWS

NBAD asset management MD and CIO steps down

NBAD asset management MD and CIO steps downMark Watts, the managing director and chief financial officer of the asset...
view article

£250bn money laundering 'storm'...

From Tax & Regulation Jul 23 2014 @ 11:52

Structured product specialist IDAD expands Asia...

From People Jul 23 2014 @ 11:44

MORE FROM People

LATEST NEWS

Saudi Arabia opens $530bn stock market to FFIs

Saudi Arabia opens $530bn stock market to FFIsSaudi Arabia is to open its stock market to direct investment by foreign financial...
view article

RDR compliant reports creating wealth manager...

From United Kingdom Jul 22 2014 @ 15:35

HK investors to increase Asian allocation...

From Asia Jul 22 2014 @ 15:09

MORE FROM Middle East



Half of all asset managers confused by FATCA, survey finds

From Tax & Regulation Jul 3 2013 BY: Ann-Marie Corvin , Reporter , International Adviser

Add to My News Comments (0)

Add to My News Print

Add to My News

add to twitter

add to linkedin


The majority of asset managers polled in a recent survey have admitted they are still unclear about the requirements of the Foreign Accounts Tax Compliance Act (FATCA) – despite the cut off period for compliance now less than six months away.


The survey, conducted among 60 of Northern Trust’s clients, cited a ‘lack of consistency’ and ‘uncertainty’ in the implementation of FATCA as the “major challenge” for 51% of asset managers.

While this percentage is lower than last year's survey (55%), Northern Trust FATCA product manager Kathleen Dugan said that the concerns shared were still the same.

“Although the implementation deadlines have been extended many of the same concerns are still shared,” said Dugan “Clients are already faced with meeting a multitude of regulatory requirements and feel challenged by the FATCA timelines and the daunting technological challenges presented.”

Dugan added that the potential differences between intergovernmental agreement rules and regulations were also “a cause for concern”.

However, some big asset management firms have confirmed that their implementation programs are already well under way. Schroders has said that it intends to be "fully compliant with FATCA requirements across its entire global business" and it has already established a dedicated programme that is assessing, preparing and implementing any necessary changes to existing arrangements.

"While there is a significant amount of effort required to prepare for FATCA compliance, we do not anticipate significant changes to our business model," a spokesperson added.

The survey itself also points to a marked increased in companies which actively had projects under way - these rose from 20% last year to 48% this year.

Similarly, in 2012 the majority of respondents (66%) were only “broadly aware” of FATCA's implications and had not activated initiation projects yet, this year that number has fallen to 46%.

FATCA, which aims to prevent tax evasion by US citizens who use non-US vehicles, such as offshore accounts, to avoid their tax obligations will come into effect in January 2014.

Some financial institutions have heavily criticized FATCA, arguing that it will become too expensive for companies to invest in America because of the cost factor.

This has prompted some US companies to file law suits against the US Government, claiming that that FATCA’s onerous reporting requirements will cost them billions.

Add to My News Comments (0)

Add to My News Print

Add to My News

add to twitter

add to linkedin


COMMENTS


Have your say

(Be the first to) Have your say!

Please sign in or register here to leave a comment. Registration is free and only takes a few moments.






Share us on Twitter

SHARE US ON TWITTER
Join the community

Join us on Linked In

SHARE ON LINKED IN
Inform your colleagues

Switch to our mobile site

SWITCH TO MOBILE SITE
News on the go

Back tot he top of the page

BACK TO TOP OF PAGE
Just click here...