Butterfield Fulcrum Now Offers a One-Stop FATCA Compliance Solution to Hedge Funds


NEW YORK, NY and LONDON, UNITED KINGDOM--(Marketwire - March 26, 2013) - Butterfield Fulcrum, a leading independent hedge fund administrator and service provider to the alternative investment industry, announced that it is now offering a comprehensive compliance solution for FATCA (Foreign Account Tax Compliance Act). The solution is a joint effort with Markit and Compliance Technologies International (CTI).

FATCA requires foreign financial institutions (FFIs) invested in US assets to document their clients such that they can affirm to the IRS that they are not aiding US persons in evading US taxes. It further requires FFIs to report the identities of their US investors and report financial information each year to the IRS. It is estimated that the law will impact over 300,000 financial institutions and their funds across virtually every asset class and places significant operational and compliance burdens on alternative investment firms.

Butterfield Fulcrum's full service solution combines its investor tracking system, KYC knowledge and processing with the FATCA Service Bureau's sophisticated document management and automated tools for IRS registration and e-tax form submission. In addition, the solution also automates all aspects of FATCA compliance including:

  • Determining correct FATCA classifications
  • Perform gap analysis on account documentation and source missing documents
  • Validate account holders' taxpayer information and identification numbers
  • Data capture and automated review
  • Serve as Authorized Third Party (ATP) to prepare and register FFI agreements between funds and the IRS
  • Implementation of new account opening procedures
  • Obtain and disseminate Global Intermediary Identification Number (GIIN)
  • Electronically file annual FATCA reports with the IRS
  • Provide withholding calculations and generate withholding statements pursuant to IRS regulations

"FATCA compliance is a key concern for clients and requires significant resources and expertise," says Tim Thornton of Butterfield Fulcrum. "We are delighted to partner with Markit and CTI in order to offer a full service solution. By blending the expertise from our three firms, we have been able to offer a cost effective and reliable route to FATCA compliance."

About Butterfield Fulcrum:

Butterfield Fulcrum is a leading independent services provider with 25 years of experience servicing clients in the alternative investment industry.  Butterfield Fulcrum provides a full service fund administration offering including front, middle and back solutions to hedge funds, fund of funds, managed accounts, private equity and real estate funds. The company services more than 800 funds and has eight offices in seven countries and employs over 350 people.  For more information, please visit www.bfgl.com.

About Markit:

Markit is a leading, global financial information services company with over 2,500 employees.  The company provides independent data, valuations and trade processing across all asset classes in order to enhance transparency, reduce risk and improve operational efficiency.  Its client base includes the most significant institutional participants in the financial market place.  For more information, see www.markit.com.

About CTI:

CTI is the source for tax withholding and information return reporting compliance needs.  CTI's sophisticated team of highly experienced international and domestic tax professionals range from lawyers and accountants, to software engineers and operations experts, located in Boston, Los Angeles, New York, Washington D.C. and London.  CTI consistently delivers cutting-edge global tax technology, consulting, and outsourcing services specializing in tax withholding and information return reporting.  For more information, see www.cticompliance.com.

Media contact:
Blair  Henderson
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