management industry faces an uphill struggle to be ready for
commencement of the US Foreign Account Tax Compliance Act
(FATCA) on 1 January 2013 - as a recent KPMG report recently
The report's findings reveal that just 32% of the fund
managers surveyed expect to be ready for the January 2013 live
date, and 42% have not yet even assessed the time needed to
Fortunately for hedge funds, FATCA is unlikely to
fundamentally challenge firms' business models in the same way
that it will other sectors of the investment management
industry. Nevertheless, compliance will be necessary and it
will require a significant amount of work.
What is FATCA?
The FATCA legislation was signed into law in early
2010 in a bid to prevent US investors from using offshore
entities to disguise their identity and thus avoid paying US
The FATCA rules are designed to compel...