The implementation of FATCA compliance rules has proved difficult because of problems in creating new reporting processes and technical issues with some registrations, according to Tim Thornton, chief data officer, Mitsubishi UFJ Fund Services: “As the next round of FATCA reporting deadlines approach, technical issues and an inconsistent reporting framework across jurisdictions continue to make FATCA compliance a significant burden on fund managers and service providers.

“The recent extension of the Cayman reporting deadline, from 31 May to 12 June, and subsequently to 26 June, reflects the difficulties in creating a reporting mechanism for a new set of rules from scratch, and the challenges of coping with considerable volumes of internet traffic attempting to register and report for the first time.

“The 30 April notification deadline for registering on the Cayman portal was also extended following technical problems with some registrations, although we were able to complete more than 100 client registrations by performing most over weekends and evenings, when traffic was less busy. It can be expected that as the process beds down these technical issues will be resolved.

“An additional layer of complexity is added by the differing reporting rules across jurisdictions, with some IGA countries requiring ‘nil returns’ where there are no reportable accounts and others such as the Caymans not requiring a return in that situation.

“As the rules are finalised within different jurisdictions and deadlines approach, move and pass, staying on top of the requirements and ensuring registrations and filings are accurate and timely requires significant coordination of information gathering from regulators. This is on top of the burden of actual ongoing compliance with the regulations for each individual fund."