The Regulatory Fundamentals Group (RFG), a New York-based firm that provides business and regulatory insights for alternative funds, institutional investors and their advisers, has released FATCA Watch, a customised "issue spotting" tool to help advisers and fund managers quickly determine their exposure to the Foreign Account Tax Compliance Act.
Implemented as a way to reduce tax evasion that may occur when income generated in the US is transferred outside the country, FATCA imposes new due diligence, reporting and withholding requirements that will ultimately impact a broad range of companies and individuals both in the US and abroad.
FATCA, which will become effective in 2014, seeks to improve the tax compliance of US persons who hold offshore financial accounts. Advisers and funds may face FATCA compliance issues both on US-sourced income they pay to non-US parties and on US-sourced income they receive.
"RFG can now provide an intuitive, user-friendly way to address concerns about FATCA efficiently and accurately," says Deborah Prutzman (pictured), chief executive and founder of RFG. "Funds and managers who use FATCA Watch can materially reduce expenses on outside advisers. At the same time, they will bring a level of competence and understanding to internal staff who are responsible for addressing the issues and overseeing outside vendors, but who do not have time themselves to become experts in this area."
RFG's FATCA Watch walks an adviser, private equity fund, hedge fund or any controlled business through a customised discussion of relevant issues. FATCA Watch is available to managers and advisers for a limited time at an introductory rate as part of the service's launch.