tailieunhanh - FATCA proposed regulations: what should asset managers do now?

The AIFM Directive’s geographic impact will stretch beyond the EU; for example, due to the additional eligibility conditions for third-country AIF jurisdictions. Third-country jurisdictions wishing to ensure that their alternative funds can be actively marketed in the EU will need to carefully review their legal and regulatory framework in relation to AIFM supervision and be prepared to implement international cooperation arrangements for the purpose of systemic risk oversight and tax cooperation with relevant EU Member States. Most of the new costs related to the implementation of the AIFM Directive will be borne by the alternative investment industry and the AIF investors | FATCA proposed regulations what should asset managers do now Interpretation and implementation of the FATCA rules will pose significant challenges for the alternative investment industry and requires significant planning By Dmitri Semenov Maria Murphy Ann Fisher and Jun Li sU Ernst Young Quality In Everything We Do The long-anticipated and voluminous Foreign Account Tax Compliance Act FATCA Proposed Regulations REG-121647-10 were released on February 8 2012. On the same day the governments of the United States France Germany Italy Spain and the United Kingdom issued a joint statement on an intergovernmental approach to improving international tax compliance and implementing This article discusses key issues affecting the asset management industry arising from the Proposed Regulations and the intergovernmental agreement and certain steps that asset managers need to take now to analyze and implement these rules with minimum business interruption. Background FATCA which became part of the Internal Revenue Code under the Hiring Incentives to Restore Employment Act of 2010 HIRE Act . 111-147 March 18 2010 represents the US government s most aggressive challenge to US tax evasion by US persons holding assets in non-US banks custodians certain insurance companies and investment vehicles. FATCA incorporates new Internal Revenue Code Sections 1471 through 1474 also referred to as the Chapter 4 provisions . The objective of FATCA is to ensure that non-US entities are not used to block disclosure to the IRS of the foreign financial accounts and offshore investments of US individuals and certain US entities specified US persons . FATCA applies to withholdable payments which include US-source dividends interest and other fixed or determinable annual or periodical FDAP income and gross proceeds from the sale of US stocks and debt instruments as well as to certain other payments passthru payments which are payments attributable to withholdable payments as defined under