Lloyd’s market bulletin – FATCA – Lloyd’s has published a market bulletin, the purpose of which is to provide initial information to the market on how the proposed US Foreign Account Tax Compliance Act (FATCA) reporting requirements on foreign financial accounts and the associated withholding tax rules are likely to affect the Lloyd’s market, and the approach Lloyd’s intends to take to minimise the impact.

The bulletin advises that the final FATCA rules, which are expected in late summer 2012, will be lengthy and complicated and there is considerable uncertainty over their application to Lloyd’s and Lloyd’s syndicates. As a result, Lloyd’s taxation department has made initial contact with the US Internal Revenue Service to open discussions on how Lloyd’s, syndicates and underwriters will be treated under the rules.

A copy of the bulletin is available. http://www.lloyds.com/~/media/Files/The%20Market/Communications/Market%20Bulletins/2012/07/Y4611.pdf