The AMF is committed to keeping the asset management community informed of latest updates from The Treasury Market Practices Group (TMPG).
Tri-party Repo Reform
The tri-party repo market is undergoing considerable operational changes, based on the recommendations made by the Tri-Party Repo Infrastructure Reform Task Force, and its Operational Arrangements working group. The AMF is focused on ensuring the asset management community’s readiness for the new settlement window and confirmation procedures.
The SIFMA sponsored industry-wide business continuity test will be conducted on October 27, 2012. This exercise will help the financial industry to plan for emergency situations, by testing the use of backup sites, recovery facilities and backup communications capabilities across our industry. The asset management community is invited to participate in the test.
The Money Market Instruments (MMI) Blue Sky Task Force Report identifies opportunities to mitigate systemic and credit risks in processing money market instruments.
Legal Entity Identifier (LEI)
An LEI is a unique identifier for a single corporate entity, the creation of which is mandated by the Dodd-Frank legislation. SIFMA created an industry working group to develop a consensus-based industry proposal that identifies the requirements and standards for a viable LEI solution.
The Asset Managers Forum is focused on the operational impacts of the new rules that will be implemented in the coming months as based on Title VII of the Dodd-Frank Act. The operational impact of these rules need to be analyzed, and the AMF’s role is to help asset managers to comply.
Large Trader ID
The SEC has adopted the Large Trader Reporting rule, which requires large trader registration and reporting. The rule requires persons who directly or indirectly exercise investment discretion and purchase or sell more than a specified amount of U.S.-listed stocks and options through a registered broker-dealer to register with the SEC as large traders.
FBAR – Report of Foreign Bank and Financial Accounts
There have been recent changes to reporting requirements related to foreign financial accounts. Based on new Treasury regulations, investment advisor employees have an individual tax filing responsibility on those foreign accounts they have a signature authority over. The filing deadlines have been extended to June 30, 2012.
FATCA – Foreign Account Tax Compliance Act
The Foreign Account Tax Compliance Act (FATCA) provisions will take effect on January 1, 2013. FATCA imposes a 30 percent withholding tax, which applies to “withholdable payments” made to a foreign financial institution (an “FFI”), unless the FFI enters into an agreement with the IRS to comply with various information reporting and withholding requirements with respect to “U.S. accounts.”