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Michael Pfeifer Comments on the Impact of FATCA on Trust Companies

May 20, 2014, Bloomberg BNA's Financial Planning Journal

Caplin & Drysdale's Michael G. Pfeifer spoke with Bloomberg BNA's Financial Planning Journal on why trust companies should be concerned about the Foreign Account Tax Compliance Act (FATCA) as trusts can be considered financial institutions subject to the law.  The possible application of FATCA to trusts and trust companies could have far-reaching implications for those companies and their clients.  For more on the story, please visit Bloomberg's website (subscription required).

Excerpt taken from the article.

Michael G. Pfeifer, a member in the Washington office of Caplin & Drysdale, Chartered, said that under the law, financial institutions are broadly defined to include any non-U.S. entity that accepts deposits, holds financial assets for the account of others, acts as an investment entity, engages in certain insurance businesses, or serves as certain kinds of holding companies.

He said the "investment entity" concept is particularly important with regard to the proper FATCA classification of trusts and trust service providers.


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