Sun, Mar 1, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

FATCA impacts Saudi investment managers

Friday, November 22, 2013

Beverly Chandler, Opalesque London:

Jad Fares of Advent Software warns that FATCA, the US law designed to prevent US tax-payers from avoiding tax and concealing their assets from the United States Internal Revenue Service (IRS) is set to have a significant impact on investment managers in the Kingdom of Saudi Arabia. "Despite the belief that they are exempt from FATCA, many Saudi-based managers are at risk of being affected" he writes.

FATCA requires that foreign financial institutions register with the IRS by June 2014 and if they do not register, they will then be regarded as "non-participating". This means that a 30% withholding tax will be applied to all their income on American assets from 2014 as well as to the proceeds from the sales of these assets from 2015.

Fares says that Saudi managers have the option to refuse to take on US clients or sell off their US clients thereby avoiding FATCA compliance. But, he asks, will managers pay the price for loss of business?

"Both registration and compliance are arduous. Many fund management companies will require 18 months or longer in order to become FATCA-compliant. They need to learn about FATCA tax law and to monitor communications from the US Department of the Treasury to develop processes in order to better understand their US clients. Extensive evaluation of their current systems and processes in areas such as corporate actions, tax operations and account s......................

To view our full article Click here

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. Investing - Seth Klarman of Baupost outlines his investment process as major stock market indices are stretched, Myriad hedge fund sold bulk of its Alibaba stake last year[more]

    Seth Klarman of Baupost outlines his investment process as major stock market indices are stretched From Valuewalk.com: As hedge fund manager Seth Klarman, leader of the $28 billion Baupost Group, reviews 2014 performance and considers investors gained near 7 percent on the year, he cons

  2. Adamas Asset Management and Ping An Insurance to co-manage $500m debt fund[more]

    Komfie Manalo, Opalesque Asia: Hong Kong-based Adamas Asset Management and Ping An Insurance Group, one of China’s largest financial institutions, have finalized a memorandum of und

  3. Opalesque Exclusive: dbSelect’s top ten FX strategies average almost 10% in January[more]

    Benedicte Gravrand, Opalesque Geneva: In one of Deutsche Asset & Wealth Management (AWM)’s hedge fund platforms, called dbSelect, a number of FX Strategies did very well in January. dbSelect is a managed investment platform for unf

  4. Opalesque Exclusive: SEC’s Mark J. Flannery warns hedge funds against valuation misconduct[more]

    Komfie Manalo, Opalesque Asia: Securities and Exchange Commission chief economist and director of Division of Economic and Risk Analysis (DERA) Mark J. Flannery has warned of the risks posed by market misconduct, particularly in the true valuation of assets by hedge fund managers. In his

  5. Dymon Asia's $3bn macro hedge fund lost 10.45% in January[more]

    From Reuters.com: Dymon Asia's $3.1 billion macro hedge fund lost 10.45 percent in January, performance data seen by Reuters showed, a month where many peers lost heavily after a surprise rise in the Swiss franc. Singapore-based Dymon, set up by Danny Yong, a former founding partner and chie