David Beattie

15/02/2012 Author: David Beattie

Editor's view: 15 February 2012

In a week dominated by the publication of the proposed implementation rules for Fatca, the race is now on to ensure that our industry can comply in good time with its wide-ranging scope.

First and foremost hedge funds will need to wade through the 388-page guidance document, mark it up, and begin to ask questions – of which there are bound to be many. But simultaneously they need to check that those who conduct business on their behalf are up to the job.

Over the coming weeks and months, service providers will play a crucial role in ensuring the hedge funds they serve are prepped and good to go as the implementation dates approach. Administrators will, for obvious reasons, figure heavily in this dance, but so will lawyers and accountants.

The less discussed, but often underlying fear with any new regulation is not that firms will fail because they haven’t strived to comply, but more that they will simply have missed something. Such oversights can be hard to avoid, noted one hedge fund manager this week, and almost always costly to rectify.

So by not keeping abreast of upcoming regulations, managers would simply be negligent, but they would also be remiss if they did not challenge the readiness of their service providers. Does your administrator have a solution to Fatca, or Form PF for that matter; do they even know what it is? With the clock ticking there perhaps has never been a more crucial time to ask these questions.

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