BuSINESS
Investment funds
FINALLY FATCA PROGRESS The major evolution in rigorous US financial regulations will likely dominate the conversation during this month’s ALFI Spring Conference. Text: Aaron Grunwald — Photos: Etienne Delorme (archives)
Keeping pace with an increasingly globalised investment funds sector has been an increasingly cross-border body of regulations, one of which is likely to top most participants’ agendas during this month’s ALFI Spring Conference, to be held March 13-14 at the Conference Centre in Kirchberg. That is FATCA, a set of strict US financial reporting regulations. FATCA is a tax-avoidance regime that requires potentially every bank and investment fund in the world to fi le reports on their clients directly with American tax authorities, even if that would be a violation of many countries’ established rules. “Obviously it shows that [Luxembourg] funds are not only impacted by what’s going on in Europe but also internationally,” notes Denise Voss, conducting officer at Franklin Templeton, and ALFI’s vice
DATE LINE January–February 2012
chair for international affairs. She points out the spring conference will have two sessions dedicated to FATCA “which shows the impact on the industry.” It could “potentially impact the way the fund industry is organised, particularly distribution.” First announced in the spring of 2010, implementation has suffered from several delays, which many in the industry had hoped was a sign that FATCA would eventually be scrapped. Nevertheless, the rules are finally due to go into effect in 2013. While the exact specifications have been dripping out over the past two years--more than 400 pages worth so far--the most detailed guidelines yet were published just last month. “FATCA is not going to be appealed,” observes Keith Lawson, senior tax council at the trade group ICI Glo-
TAKE OFF The chair of Luxair’s JAN board of directors and Cargolux board member an nounced his resignation from the air transport companies ef fective May 14. Marc Hoffmann cited personal reasons for his departure, and remains chief of private bank CBP Quilvest.
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LANDING Word circulated that JAN Paul Helminger, for mer mayor of Luxembourg City and current MP, would join the Cargolux board of directors and become its chair. Jean-Claude Finck, currently vice chair of Luxair, will take over as board chief of the airline.
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SECURED Euro zone member feb states signed the ESM treaty, which creates a perma nent EU bailout agency to take over from the temporary res cue fund EFSF in July. Like the Kirchbergbased EFSF, the Eu ropean Stability Mechanism will be based in the Grand Duchy.
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29.02.2012 11:17:35 Uhr