The US Treasury Department and the Internal Revenue Service (IRS) released their guidance on FATCA for the asset management industry, with a compliance deadline of January 2014. Key issues in implementation and other areas remain to be resolved.
The long-awaited final Foreign Account Tax Compliance Act (FATCA) regulations have arrived and, while much analysis still needs to be done, the US Department of the Treasury and the Internal Revenue Service (IRS) provided welcome relief on a number of key issues for the asset management industry.
That being said, significant implementation challenges still remain for the asset management industry and substantial work must be undertaken through the course of 2013 in order for asset managers to be compliant by January 1, 2014. Failure to undertake the necessary tasks in 2013 can expose investment managers to a variety of business and investor relation risks.
This Newsbrief highlights key areas for consideration for asset managers (including notable changes from the proposed FATCA regulations) as they set their FATCA implementation agenda for 2013 and beyond. For an overview of the final FATCA regulations, see Global IRW Newsbrief: Final FATCA regulations issued: Let the compliance begin.