Market tax utility hits the market

Markit says it has launched a tax utility supporting compliance with US Treasury FATCA obligations, designed in partnership with Deutsche Bank, HSBC and Morgan Stanley to provide tax form validation and secure distribution as well as remediation for pre-existing clients.

“Utilising market utilities and bringing more standardisation to processes is important to realising consistency and efficiencies in the industry,” said Cynthia Chow-Coster, managing director, at Morgan Stanley Wealth Management. “Markit | CTI Tax Solutions and Counterparty Manager provides solutions for document management and tax compliance.”

“Through Counterparty Manager and our Markit | CTI Tax Solutions, we are uniquely positioned to offer clients cost savings and more robust regulatory coverage as they manage their FATCA and other rules like the Common Reporting Standard,” said Jon May, managing director, global head of regulatory and compliance managed services at Markit. “This is a natural extension of our regulatory compliance and tax ecosystem to enable our customers to meet KYC and specific FATCA requirements.”

Markit says the tax utility is part of its broader ecosystem of compliance solutions to support know your customer (KYC), financial regulation, tax and counterparty requirements. Similar to ISDA Amend and the collection of data for Dodd-Frank compliance, the utility leverages Markit’s existing Counterparty Manager database which provides access to 113,000 legal entities across buy-side firms and corporates. It enables buy-side firms and corporates to upload specific Forms W8 or W9 which are validated through Markit ǀ CTI Tax Solutions and permissioned out to their bank counterparties. Buy-side firms and corporates benefit from a centralised repository within Markit Counterparty Manager to communicate any key changes in circumstances which may affect their tax or regulatory status.