FATCA Compliance Still a Concern According to Northern Trust Survey of Asset Managers Business Wire LONDON -- June 28, 2013 Asset managers continue to be challenged by the “lack of consistency” and “uncertainty” around the Foreign Account Tax Compliance Act (FATCA). This is according to data released by Northern Trust (Nasdaq: NTRS), following its annual survey of fund managers. The survey was conducted among 60 Northern Trust clients in Europe, Middle East and Africa attending a seminar on The Foreign Account Tax Compliance Act (FATCA) at Northern Trust’s Canary Wharf offices. It follows a similar survey conducted in 2012 among 30 of Northern Trust’s fund management clients. Consistent with the 2012 survey which saw 55 percent of respondents citing their greatest challenge surrounding FATCA as “uncertainty around the requirements”, this year’s results still show the majority (51 percent) consider “lack of consistency” and “uncertainty” a major challenge. “Although the implementation deadlines have been extended, many of the same concerns are still shared,” said Kathleen Dugan, FATCA product manager, Northern Trust. “Clients are already faced with meeting a multitude of regulatory requirements and feel challenged by the FATCA timelines and the daunting technological challenges presented. Additionally, the potential differences between the intergovernmental agreement rules and the regulations are causing concern.” FATCA, which aims to prevent tax evasion by US persons who use non-US vehicles, such as offshore accounts, to avoid their tax obligations, was originally enacted in March 2010 with plans to generally come into effect in January 2013 (for US financial institutions) and July 2013 (for foreign financial institutions). However, recognizing the complexities of the rules and the delays in publication of certain key guidance, the US Internal Revenue Service and Treasury Department postponed the general implementation date until January 2014. In a marked increase on the previous year, 48 percent of fund managers surveyed had projects “actively underway” to manage the set requirements, compared to 20 percent in 2012. Similarly, in 2012 the majority of respondents (66 percent) were only “broadly aware” of the implication and had not initiated projects to manage their response to the impending regulation. This number has reduced in 2013 to 46 percent as the majority of fund managers now have projects actively underway. “Given the progressing timeline, we would anticipate a change in the readiness of fund managers to implement FATCA ahead of the January 2014 implementation,” said Toby Glaysher, head of Global Fund Services, Europe. “Northern Trust has a dedicated team of FATCA experts already working actively with our fund manager clients and is well placed to support their requirements for data to help with investor due diligence, withholding and reporting.” Northern Trust’s Global Fund Services business provides custody, fund administration, investment operations outsourcing, and ETF solutions to investment managers across the globe and across the spectrum of asset classes. Northern Trust’s dedicated programme of workshops, newsletters and leadership provides regular updates from experts on the latest regulatory developments impacting its clients and how Northern Trust is evolving to support these requirements. About Northern Trust Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of investment management, asset and fund administration, banking solutions and fiduciary services for corporations, institutions and affluent individuals worldwide. Northern Trust, a financial holding company based in Chicago, has offices in 18 U.S. states and 17 international locations in North America, Europe, the Middle East and the Asia-Pacific region. As of March 31, 2013, Northern Trust had assets under custody of US$5 trillion, and assets under investment management of US$810.2 billion. For more than 120 years, Northern Trust has earned distinction as an industry leader in combining exceptional service and expertise with innovative products and technology. For more information, visit www.northerntrust.com or follow us on Twitter @NorthernTrust. Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A, incorporated with limited liability in the U.S. The Northern Trust Company, London Branch (reg. no. BR001960), Northern Trust Global Investments Limited (reg. no. 03929218) and Northern Trust Global Services Limited (reg. no. 04795756) are authorised and regulated by the Financial Services Authority. Northern Trust (Guernsey) Limited, Northern Trust Fiduciary Services (Guernsey) Limited, and Northern Trust International Fund Administration Services (Guernsey) Limited are licensed by the Guernsey Financial Services Commission. Northern Trust International Fund Administrators (Jersey) Limited and Northern Trust Fiduciary Services (Jersey) Limited are regulated by the Jersey Financial Services Commission. Northern Trust International Fund Administration Services (Ireland) Limited, Northern Trust Securities Services (Ireland) Limited and Northern Trust Fiduciary Services (Ireland) Limited are regulated by the Central Bank of Ireland. Northern Trust Global Services Limited has a Netherlands Branch which is authorised and regulated in the Netherlands by De Nederlandsche Bank. Northern Trust Global Services Limited has a Luxembourg Branch which is authorised and regulated by the Commission de Surveillance du Secteur Financier (CSSF). Northern Trust Luxembourg Management Company S.A. is regulated by the Commission de Surveillance du Secteur Financier (CSSF). Northern Trust Global Services Limited operates in Abu Dhabi as a Representative Office, Licence number 13/238/2008 which is authorised and regulated by the Central Bank of the United Arab Emirates. The Northern Trust Company operates in Canada as The Northern Trust Company, Canada Branch which is an authorized foreign bank branch under the Bank Act (Canada). Trustee related services in Canada are provided by the wholly owned subsidiary The Northern Trust Company, Canada, an authorized trust company under the Trust & Loans Companies Act (Canada). Deposits with The Northern Trust Company and its affiliates and subsidiaries are not insured by the Canada Deposit Insurance Corporation. Northern Trust operates in Australia as a foreign authorised deposit-taking institution (foreign ADI) and is regulated by the Australian Prudential Regulation Authority and the Australian Securities & Investments Commission (AFS Licence No: 314970). The Northern Trust Company of Hong Kong Limited is regulated by the Hong Kong Securities and Futures Commission. The Northern Trust Company has a Singapore Branch which is a foreign wholesale bank regulated by the Monetary Authority of Singapore. The Northern Trust Company has a branch in China regulated by the China Banking Regulatory Commission. Northern Trust Global Investments Japan, K.K. is regulated by the Japan Financial Services Agency. Northern Trust Global Services Ltd (UK) Sweden Filial is authorised by the Financial Services Authority and subject to regulation by the Finansinspektionen. Northern Trust Global Investments Limited has a Netherlands branch which is authorised by the Financial Services Authority and subject to regulation in The Netherlands by the Autoriteit Financiële Markten. Northern Trust Global Investments Limited has a Sweden branch which is authorised by the Financial Services Authority and subject to regulation in Sweden by the Finansinspektionen. Contact: Northern Trust EMEAContact: Camilla Greene, +44 (0) 207 982 2176 Camilla_Greene@ntrs.com or US, Canada & APAC Contact: John O'Connell, +1 312 444 2388 John_O'Connell@ntrs.com http://www.northerntrust.com
FATCA Compliance Still a Concern According to Northern Trust Survey of Asset Managers
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