Why you need to know about FATCA

Designed to crack down on US residents evading tax in offshore investments, the Foreign Account Tax Compliance Act (FATCA) was enacted in 2010 as part of the US’s Hiring Incentives to Restore Employment (HIRE) Act. The legislation will mean people across the world who are invested in US assets will have to prove they are not a US person or suffer 30% tax on income from and gross proceeds from the sale of the assets. While it is clear how the new regulation will affect fund groups and platforms, the extent to which FATCA is set to impact IFAs is not so transparent. A common misconce...