NEW YORK, March 27, 2014 /PRNewswire/ -- Investment managers appear to be underestimating the time, effort and costs entailed in preparing for the implementation of the Foreign Account Tax Compliance Act (FATCA), even as one key deadline looms on April 25 2014, according to a new survey conducted by DMS Offshore Investment Services (DMS) in partnership with SEI (NASDAQ:SEIC).
According to the survey results, many investment managers are unaware of critical deadlines and the associated costs to meet them.
"The objective of conducting the survey was to measure the level of FATCA preparedness of investment managers across different jurisdictions representing various size brackets based on assets under management," said Silvana Zepeda, DMS Director. "DMS hoped to capture data on their interactions with key service providers such as administrators, lawyers, auditors and FATCA Responsible Officers. We were able to identify misperceptions on the cost of compliance and also measured the level of awareness on the upcoming deadlines. The results were enlightening."
Highlights from the survey include:
More than a third of respondents said they have either not yet established a plan or have yet to decide how to proceed when it comes to planning for the completion of investor due diligence.
The majority of respondents (48%) did not know the April 25, 2014 deadline by which FFIs are required to register for a registered Global Intermediary Identification Number (GIIN) with the Internal Revenue Service.
Over two-thirds (69%) anticipate that the annual cost will be less than $10,000 for each of the following FATCA-related expenses: legal, administration, FATCA Responsible Officer, and FATCA compliance.
"The information from this survey reinforces to the hedge fund industry that FATCA ushers in a whole new set of compliance regulations and requires a diligent understanding of its implications and immediate action," said Anne Storie, Chief Executive Officer of DMS. "This paper serves as a timely addition to the discourse surrounding FATCA and as a guide to helping managers better prepare for its implementation in the short time frame that remains."
Further information from the survey report may be obtained here
DMS Offshore Investment Services Ltd. (DMS) is the worldwide leader in fund governance with more than 200 professionals representing leading investment funds with assets under management exceeding $330 billion. DMS provides trusted and comprehensive Fund Governance, FATCA, AIFMD, Banking + Custody, Trust, Corporate and Outsourcing solutions that support investments across a range of structures, and diverse investment strategies.
Additionally, The DMS FATCA Task Force is the division of the firm that focuses exclusively on FATCA research and compliance implementation.
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