Fund industry must get ready for onset of Global FATCA next year, warns Linedata
The first reporting deadline for FATCA has just passed (31st March 2015). But today it’s the OECD Common Reporting Standards, dubbed ‘Global FATCA’, which fund administrators and investment managers should be worrying about, says Justin Hayes, product manager at Linedata, the leading international software and technology provider.
“The focus up to now has been on the US regulations, but it’s a drop in the ocean compared to what’s about to hit the financial world next year. Fund administrators really need to start ensuring their systems will be complying with the OECD Common Reporting Standards, dubbed ‘Global FATCA’, which are global in scope and enforce very complicated and burdensome requirements.
“The OECD’s Common Reporting Standards will take the reins from FATCA on a global scale. With over 50 jurisdictions already on board and a further 46 committed to sign up, FATCA has a limited impact compared to the administrative challenges set to face global financial firms under its global equivalent.
“Operating on a multi-jurisdictional level, administrators and investors outside of the US and not previously impacted by FATCA could now find themselves falling into this remit. Some client accounts may need to be reported across multiple jurisdictions, adding to the pressure on resources and costs to gather and report this information.
“The new global standards to tackle secrecy on tax matters could also see a strain on investor and client relations, requiring administrators to carry out additional checks on their existing investors in order to report to the authorities.”