Wed, Apr 23, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

The IRS postpones FATCA and meets a mixed response

Friday, October 26, 2012

Beverly Chandler, Opalesque London: News that the IRS is postponing its Foreign Account Tax Compliance Act (FATCA) -related deadlines to a staggered start between January 1st 2014 and January 1st 2017 has been met with a mixed response. Jim Muir, director of AutoRek, a financial services data reconciliation firm, commented : "It may be considered a good thing for the authorities to be seen as listening to industry feedback. However, good, well-intended regulation, such as FATCA, should not be postponed simply because institutions are in a state of poor preparedness. In this case, the perception in the public eye may be that the regulators and authorities are simply too soft on banks and other financial institutions who have had quite some time to get ready for FATCA."

FATCA has caused consternation through the hedge fund industry, with speakers at the recent Opalesque New York Roundtable describing it as a 'train wreck’with Joe Taussig of Taussig Capital saying: "Tax revenues for the US from FATCA will be somewhere in the order of $7-10 billion, and compliance could cost $1 trillion a year. There are over 100,000 financial institutions in the world that will be daisy chained in this thing."

It is believed that the IRS is delaying FATCA implementation because of feedback that complying with the original deadlines is proving impractical. AutoRek’s Muir said: "What FATCA has achieved th......................

To view our full article Click here

Banner
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. …And Finally – Flight attendant has passengers rolling in aisle[more]

    From Orange.co.uk: A video of a US flight attendant turning her safety talk into a comedy routine is proving a huge hit online. More than five million people have watched the clip of Marty Cobb which has her passengers rolling with laughter on a Southwest Airlines flight to Salt Lake City.

  2. Niche Investing – Wealthy investors flock to fine art funds[more]

    From Clickorlando.com: Wealthy investors looking to diversify beyond stocks and bonds are now turning to an unusual money-making vehicle -- the art investment fund. The name says it all: These funds invest in fine art and seek returns by acquiring and selling high-end pieces for profit. Growth

  3. University of Michigan allocates $242m to six managers[more]

    From PIonline.com: University of Michigan, Ann Arbor, invested or committed a total of $242 million to one traditional equity manager and five alternative investment funds from its $9 billion endowment. University regents approved the hire of Mittleman Investment Management to run $35 million in act

  4. Performance – Odey flagship hedge fund suffers brutal March as shorts rise, Blackstone first-quarter profit rises 30% on higher fees[more]

    Odey flagship hedge fund suffers brutal March as shorts rise From Valuewalk.com: The tide has turned for the worse for one of Europe’s best performing hedge funds. Crispin Odey’s flagship hedge fund, Odey European has suffered a 4.63% decline for the year after slipping 7.2% in March, ac

  5. Agecroft Partners estimates 90% of hedge funds using social media[more]

    The use of social media has increased significantly within the hedge fund industry over the past couple of years. Social media is broadly used by investors as part of their due diligence process on hedge funds, by service providers in their sales efforts to hedge funds, and by hedge funds to enhance