Fri, Mar 23, 2018
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. John Paulson, once the industry's largest hedge fund, to return some investors' money[more]

    Komfie Manalo, Opalesque Asia: John Paulson is reported to be retuning some of his investors' money as a number of his hedge funds continue to suffer setbacks, reports

  2. Institutional Investors - Overdrawn pension fund scores gains[more]

    From Investments in big banks, pawn shops and rolling papers helped boost public safety workers' underfunded pensions this past calendar years, according to newly released figures. After recording middling returns in recent years, the Police & Fire Pension Fund (P&F) notched

  3. Activist Investors - The seven most undervalued stocks in Larry Robbins' portfolio, Stamford hedge fund still seeking shakeup of Taubman board[more]

    The seven most undervalued stocks in Larry Robbins' portfolio From ...On February 14th, Larry Robbins' firm Glenview Capital Management filed its quarterly Form 13F regulatory filing. The firm's stock portfolio totals $18.5 billion with 58 positions according to the latest

  4. Hot hedge fund loses 21% after bet on volatility goes wrong[more]

    From In December, Shahraab Ahmad shared with his hedge fund clients the principle that helped him trounce peers for two turbulent decades: steer clear of the crowd. He'd turned $50 million into an operation with more than $700 million over three years and delivered market-beating retu

  5. Opalesque Exclusive: Northern Trust builds on blockchain-backed private equity solution[more]

    Bailey McCann, Opalesque New York: Private equity clients at Northern Trust can now carry out audits of private equity lifecycle events directly from the blockchain. Northern Trust, working with PwC and other audit firms in Guernsey, has added this feature to its existing solution set for private