FATCA Compliance Still a Concern According to Northern Trust Survey of Asset Managers

  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originally enacted in March 2010 with plans to generally come into effect in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
 
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