Conquering the Complexity of FATCA and AIFMD Compliance
The expansion of financial regulation is a fact of life for more and more markets including the Alternative Investments sector, especially in North America and Europe. The latest pan-European regulation of financial markets is the Alternative Investment Fund Managers Directive (AIFMD), often referred to simply as the “Directive.” The AIFMD is broad and touches every aspect of a fund manager’s business and puts a premium on information capture, management and communication.
On the other side of the Atlantic, but also affecting European GPs and anyone doing business in the USA, is the Foreign Account Tax Compliance Act (FATCA), enacted in 2010 as part of the Hiring Incentives to Restore Employment (HIRE) Act. FATCA has had a considerable impact upon the alternative investment business globally. FATCA demands that all foreign financial institutions, including alternative investment funds, identify and disclose their U.S. account holders or face a 30% withholding penalty. This will require increasing levels of due diligence from everyone as well as a robust technology platform that can adapt to future needs.
FrontInvest: the most comprehensive suite of solutions for FATCA compliance
Alternative investment participants can use FrontInvest to accelerate investor identification and due diligence processes to comply with FATCA regulations.
eFront developed a specific methodology for General Partners and depositories to adapt efficiently to an evolving regulatory environment. The Due Diligence module will enable firms to standardize the due diligence process across the entire investment team with an account opening process and document management. Tax withholding and reporting are addressed through our existing fund management and accounting features, allowing the user to process business transactions and tax activities even on complex investment structures in various international standards.
Download our brochure on the FATCA IT platform
FrontInvest: conquering complexity in achieving AIFMD compliance
Like FATCA, the Directive creates a huge compliance burden for EU-based private equity firms. FrontInvest can help GPs streamline compliance with many AIFMD chapters. From the valuation process to workflow management, access rights control, investment structure overview, cash flow forecasting, reporting, dashboards and many more features, FrontInvest provides an immediate solution, and a platform for the future. These features and capabilities help GPs streamline the operations needed to answer the transparency, risk management, capital requirement, valuation and PE/RE funds management chapters of the Directive.
To learn more about FrontInvest and AIFMD, download the paper Conquering Complexity in Achieving AIFMD Compliance