About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

SIX Financial Information Prepares Data Solution for Fatca Compliance

Subscribe to our newsletter

SIX Financial Information has joined the growing band of market data vendors preparing to meet the reference data requirements of the US Foreign Account Tax Compliance Act (Fatca). While Fatca regulation is not expected to be finalised until next year, ahead of the act coming into effect on 1 January 2014, SIX Financial Information is enhancing the reference data structure of its Valordata Feed with a view to completing and testing its data provision once regulatory requirements are clearly defined.

In essence, Fatca requires foreign financial institutions (FFIs) with US clients to carry the burden of tax reporting to the US Internal Revenue Service (IRS). Banks are expected to enter contracts with the IRS ahead of the compliance deadline, with failure to comply potentially costing FFIs 30% withholding tax on all payments from US sources.

SIX Financial Information has delivered early elements of its Fatca data solution in the latest release of Valordata Feed. These include the structures and labels required to mark institutions and instruments affected by Fatca. The implementation of rule sets to classify instruments that fall within Fatca and any sources needed to populate the structures will only be done after the IRS has issued final regulations and relevant sources become available.

Jacob Gertel, senior project manager of legal and compliance data at SIX Financial Information, explains: “We decided to provide Fatca data as it is our strategy to provide customers with the data required to meet regulatory, tax and compliance requirements. Instrument data for Fatca will be based on our existing data coverage of close to 11 million instruments. We are awaiting more details about the implementation of Fatca, but our goal is to get corporate data, such as data covering participating FFIs, from the IRS, if it is available.”

Ivo Bieri, head of business development at SIX Financial Information, adds: “We are gradually incorporating structural changes into Valordata Feed to give our clients sufficient adjustment time and ensure that when Fatca comes into effect we can focus purely on accuracy and quality of data.”

SIX Financial Information will deliver data required for Fatca compliance as part of Valordata Feed’s regulation, tax and compliance stream. The data will also be accessible via the Telekurs iD display service, although Gertel expects most customers to select the Valordata Feed option.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: How to apply innovative e-comms surveillance whilst ensuring control, compliance and enhanced productivity

Remember the days when email was the predominant media for electronic communications within and among financial institutions? Fast forward to today, and email represents a declining fraction of these e-comms, many of which are hosted by modern collaborative platforms such as Microsoft Teams, Webex, Slack, and Zoom, and all of which are subject to surveillance....

BLOG

Clarity AI and LSEG Create Compliance Tool for Updated SFDR

Sustainability tech platform Clarity AI is providing the infrastructure and analytics behind a new tool that’s helping LSEG’s financial institution clients comply with European ESG reporting rules that came into effect this week. SFDR Reporting Professional Powered by Clarity AI has been created to enable compliance with the new Level 2 Sustainable Finance Disclosure Regulation....

EVENT

RegTech Summit APAC

Now in its 2nd year, the RegTech Summit APAC will bring together the regtech ecosystem to explore how capital markets in the APAC region can leverage technology to drive innovation, cut costs and support regulatory change. With more opportunities than ever before for RegTech to add value, now is the time to invest for the future. Join us to hear from leading RegTech practitioners and innovators who will share insights into how they are tackling the challenges of adopting and implementing regtech and how to advance your RegTech strategy.

GUIDE

Regulatory Data Handbook 2022/2023 – Tenth Edition

Welcome to the tenth edition of A-Team Group’s Regulatory Data Handbook, a publication that has tracked new regulations, amendments, implementation and data management requirements as regulatory change has impacted global capital markets participants over the past 10 years. This edition of the handbook includes new regulations and highlights some of the major regulatory interventions challenging...