Politics & Regulation

FATCA rules bring disquiet


A sense of disquiet has settled among Asian hedge fund managers and their custodians and prime brokers in Asia following the release of guidelines related to the Foreign Account Tax Compliance Act (FATCA) initiatives in the US.

FATCA looks to increase disclosure of US persons with accounts outside the US – through an expansive set of new requirements that, if not complied with, will result in punitive 30% withholding tax for interest, dividends, and sales proceeds on US securities. The withholding tax is supposed to take effect on January 1, 2014. The primary objective of the new guidelines