On 8 February 2012 the long awaited draft rules of the IRS have been published. The delay seems to be related to talks between different European Governments and the IRS to work around potential legal issues around handing over client data directly to the IRS.
For financial institutions, this raises the question of whether they can continue to pursue current company strategies or the existing business model when taking into consideration the changes that have already occurred as well as those changes that are looming.
Due to so called “2nd order effects” the impact of FATCA on the distribution of financial products is expected to be more significant than initially considered.