FATCA Comments from SIFMA

SIFMA has provided two "important and time sensitive" additional comments to the IRS and Treasury with respect to FATCA. These comments supplement SIFMA's original comments that were made on April 30.

First, SIFMA is concerned that the proposed FATCA regulations could be interpreted to require withholding by brokers on the purchase of securities from non compliant FFIs rather than by brokers effecting sales. They note that while brokers effecting sales have systems in place for backup withholding if their customer does not provide a W-9, brokers representing purchasers lack such a system and such brokers would have to determine if the seller of the securities is FATCA compliant. SIFMA urges that either the final regs not require this or delay this requirement to 2017, consistent with the effective date for withholding on gross proceeds under IGAs. Second, SIFMA wants the final regulations to defer on application of FATCA to DVP/COD transactions (delivery-via-payment/ cash-on-delivery transactions) consistent with the IGAs' time frame.

View letter here(links externally to SIFMA website).