FATCA Roles & Responsibilities Working Group Meeting - TISA

FATCA Roles & Responsibilities Working Group Meeting – 8 th August 2013speak with in respect of FATCA.• 10: CC to feedback to establish if IFA communication is being coveredin Fund Manager Circle – LP advised that feedback had been sent to theIMA earlier that week (w/c 5 th August). The Chair asked LP to requestCC to circulate the feedback to the Group.4. Live issues:• MK suggested that copies of the self-certification forms be circulated toGroup.• CW asked when others in the group were planning to the put the selfcertificationforms live, as some firms he had been speaking with weresaying they would be live in January and others live in July, whilst otherfirms were saying at some point between the two.• Feedback from group members suggested it would be advantageous forfirms to have everything in place ready to go live regarding requestingand capturing the necessary information from 1 st January 2014 despitethe fact the requirement isn’t compulsory until 1 st July 2014, as firmshad already been working towards the end date of 1st January 2014prior to the IRS announcing the 6 month delay.• It was agreed this approach may affect the first stage of reporting in2015, however by 2016 firms should have completed the necessary backbook of business sweeps and 2016 would be the first year of fullreporting.• CW asked about corporate clients that are being pre-classified by firms.If it transpires that they are a participating FFI that requires a number,how are firms proposing to treat the requirement to capture that number,dealing with the issue of knowing/not knowing the GIIN and the timingfor the ability of corporate clients to provide this?• Following discussion in the Group, it was generally agreed that whilstdirect clients have to have a GIIN, a client of a client, as an underlyinginvestor, having no GIIN or not knowing this is not an issue as reportingwill be based on US indicia.• CW asked how the timing of this would be treated.• For underlying corporate clients it was agreed that firms would not berequired to obtain a GIIN as the reporting obligation sits with theFinancial Institution that is making the direct investment.• ND confirmed that potential further EU legislative proposals, such asOECD, will likely steer the industry towards all firms having a uniqueinvestor identification number where firms will be categorised in theirtax reporting field.• ND commented there had been a paper from Kate Randall-Cole ofHenderson circulated within the TA Forum outlining how firms canbreak down entity classifications. ND agreed to pass a copy of thispaper to the Chair.• LP commented that some fund management firms had already made thedecision to change their application forms, for UK funds, from 1stSeptember 2013 to start collecting the self-certification information inaddition to adhering with rebranding obligations (to change FSA to FCAby 1st April 2014) in addition to HMRC changes for ISA declarations(by 1st October 2013), rather than do the exercise on multiple occasions.• The Group discussed how the UK funds industry is still waiting forHMRC to provide a definitive guide to application form wording forPass copy ofHenderson entityclassificationpaper to JM (ND)Page 2 of 3

FATCA Roles & Responsibilities Working Group Meeting – 8 th August 2013CDs (Crown Dependencies). The IMA have similarly not yet circulatedtheir wording despite having received suggested wording from APCIMSand some of the larger asset managers. It is believed that the IMA wereplanning to send out finalised suggested application form wording atsome point in August, however there is no confirmation from HMRC asyet as to whether they will definitely issue a guide and, if so, when thisis likely to be issued.• MG suggested that the Group raise this with the representatives fromHMRC at the FATCA Executive Committee meeting scheduled to takeplace at 11:00am that day.• The Group discussed how delays will affect firms of all sizes as thisincurs additional costs in terms of system development, however forsmall to medium organisations, there is more of a reason to wait due tothe uncertainty and costs incurred by delays, so the system developmentprogramme is completed once rather than incur additional costs furtherdown the line.• The Group agreed that new proposed and pending regulations comingup over the next few years such as OECD and EU changes willunavoidably incur additional system development costs. Somemembers commented that they had extended their system build forFATCA to cover upcoming regulatory information capturing andreporting requirements, meaning that future costs should be fairlyminimal for any additional system changes.• The Group was asked how their firms are approaching a resident that isalso a citizen, leading to 3 types of reporting for one person.• The conclusion was, using the example of a UK resident who is a UScitizen, there would be a report for QI, report for FATCA and report forHMRC if they are also a UK tax resident.• It was suggested that identifying the differences between a tax residentand citizen would help lessen reporting requirements and allow them tobe cured in different ways.5. Next Steps:• The general plan would appear to be that firms are moving forward from1 st January 2014 regardless of the 6-month delay to avoid losingimpetus.• The Chair suggested that firms look to extend out their system build forFATCA to consider future regulatory requirements such as the OECDproposals to avoid incurring unnecessary expense in the future.6. Date and time of next meeting:• The Chair recommended that the Working Group activities be rolledinto the main FATCA Executive Committee and that the WorkingGroup be closed.• As such there is no requirement for a further meeting of this particularWorking Group.Attachments:Actions LogPage 3 of 3