EFAMA’s letter refers to the publication in July this year of a Model Intergovernmental Agreement which was signed by all the G5 countries – France, Germany, Italy, Spain and the UK. Under the agreement, the countries have agreed to provide the US with a greater degree of cooperation in order to help financial institutions in the G5 countries comply with measures the US has introduced as part of its Foreign Account Tax Compliance Act.
The trade body, which represents fund groups from across Europe, is urging governments in Europe to sign up to an IGA in order to assist firms to comply with FATCA in a way which does not compromise their compliance with existing EU laws, such as data protection.
In its letter, which can be viewed here, EFAMA said: “We note that, three years after FATCA was first proposed, no alternative approach to IGAs has yet been identified that would address the fundamental conflicts between the requirements of FATCA and of domestic law in European jurisdictions.
“No further time now exists for the industry to become compliant without clarity of approach on this core point, and thus we urge all European Governments to progress IGA negotiations as soon as practicable.”
