BNP Paribas Securities Services is launching a fund monitoring and reporting service to help asset managers handle the demands of the Foreign Account Tax Compliance Act (Fatca).
The act will require all non-US financial institutions to identify their US account holders and annually report them to the Internal Revenue Service (IRS) along with account details and transaction data. The US recently pushed back the Fatca start date to January 2014.
Although many asset managers have criticised the act, which they say will increase their administrative burden and raise costs to the end investor, some asset servicing firms see the rules as an opportunity to extend the services they offer their asset management clients.
BNP Paribas SS says, in its capacity as transfer agent, it will identify funds’ investors and generate investor reports that meet IRS guidelines.
“Although the final details of what foreign financial institutions will be required to report have not yet been published, we know in broad terms what is required in terms of data and how to meet the associated processing and reporting requirements,” says Philippe Ricard, head of asset and fund services at BNP Paribas SS.
“Fund evaluation, monitoring and reporting are at the core of our business so we are in an excellent position to help funds and asset managers comply with Fatca.”
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