Fatca special report
Click here to download the PDF
Gather Ye Data While Ye May
Inside Reference Data has devoted a lot of coverage to the Foreign Account Tax Compliance Act (Fatca) in recent months, and there have been many developments to report with this law, the agreements being made internationally to enforce it and the measures being taken at firms to comply with it. That can be seen in the news section of this special report, with reports of the US authorities postponing deadlines for Fatca compliance, European efforts to find ways to get the entire industry working together on compliance solutions, and even the chance that many other countries will create their own versions of Fatca to collect foreign transaction taxes.
BNY Mellon's Amy Harkins pointed out the possibility of a "global Fatca" back in June. In the Virtual Roundtable, we asked how Fatca as it stands is likely to affect data gathering and management. Harkins prescribes complete updates to firms' systems to accommodate new processes before addressing client onboarding under the new rules. Many others in the industry have noted that the US Internal Revenue Service's guidance on Fatca is still incomplete, even though postponements to key compliance milestones have already been made. The missing details, Harkins says, are "particularly challenging" for compliance efforts.
The industry knows it must collect more information than previously required under traditional "know-your-customer" processes, as Avox's Mark Davies notes. This includes alterations to a client's status, such as a change to its US or foreign status. It also means obtaining Global Intermediary Identification Numbers (GIINs), as SIX Financial Information's Jacob Gertel points out. With the implementation of Fatca set tobeginJuly1, there will be more data to track and manage. Industry executives are thinking about how to do this and trying to act while there is still time.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Regulation
Northern Trust offers internal fund accounting, data tools to clients
Regulations and a mandate to enhance quality and transparency in a bid to improve the investor experience are pushing buy-side firms to have more oversight of their third-party providers.
EU firms press for faster move to T+1 after smooth US rollout
Following the example set by North America, 70% of attendees at a European hearing on shorter settlement cycles favored a Q4 2027 switch to next-day settlement.
Finra clears hurdle with CAT launch, but several others remain
Two major components of the consolidated audit trail are now in place. But wrangling over the CAT’s future continues.
Bloomberg, industry bodies push back on Cboe’s proposed OEMS rule change
Some industry bodies disagree with the options exchange’s proposal to carve its Silexx OEMS out of the SEC’s definition of an exchange facility and place it into a separate business line.
GenAI: US Fed reveals its five use cases
Internal sandbox used to assess viability and risks; coding and content generation on the agenda.
Zeros and ones: Industry contemplates T+0 as the next step
With the North American transition to T+1 settlement complete, same-day settlement could be the next goalpost set, though skeptics are many.
The IMD Wrap: Déjà vu as exchange data industry weighs its options
Max highlights some of WatersTechnology’s recent reporting on data costs and capacity issues facing the options industry, and asks, haven’t we seen this before somewhere?
FRTB data quality issues persist amid shifting implementation dates
Banks are finding market and reference data challenges posed by the FRTB’s standardized model tricky, compounded by uncertainty over when the regulation will take effect.