Sun, Oct 4, 2015
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. Performance - Hedge fund moguls Einhorn, Loeb, Rosenstein lose money in September, Risky strategy sinks small hedge fund[more]

    Hedge fund moguls Einhorn, Loeb, Rosenstein lose money in September From Billionaire stock pickers David Einhorn, Daniel Loeb and Barry Rosenstein on Wednesday told their wealthy investors they lost money in September as market turmoil inflicted more pain on some of America'

  2. Opalesque Exclusive: IRAs represent billions of untapped capital for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva: Retirement accounts might not be the first source that comes to mind for those looking to raise funds, but they may represent billions of untapped capital. Unlike traditional retirement accounts,

  3. Opalesque TV: One way to access market hedge funds in the EU under the AIFMD radar[more]

    Benedicte Gravrand, Opalesque Geneva: While the Cayman Islands, the US and Hong Kong await the pan-European marketing passport to be extended to alternative investment fund

  4. Vilas’ equity long bias hedge fund generates market-beating results[more]

    Komfie Manalo, Opalesque Asia: The Vilas Fund, an equity long bias fund managed by Chicago, Illinois-based Vilas Capital Management, posted five-year annualized returns, net of fees, of 23.47% vs. 15.87% for the S&P 500 Index, including divid

  5. Performance - Manager admits spin used to hide poor performance, Fortress macro hedge fund slumps 17.2% amid manager shakeup, In the hedge fund world, bigger is still better[more]

    Manager admits spin used to hide poor performance From … Colin McLean, managing director of SVM Asset Management, told FTAdviser that fund managers underperform all the time, so stories are often needed to mask or explain this. “People need to build a good framework