This week’s International Treasurer editorial meeting brought forth a few issues that we’ll be exploring in the coming weeks. We’ll take a look at where FATCA stands and what countries are doing to comply. An update on where companies stand on the Title VII derivatives section of Dodd-Frank; are they any closer to being ready? Finally, we’ll give an overview of how technology is helping the treasury function evolve.
FATCA.
Just this month the first FATCA agreement was entered into with the UK. This likely bodes well for the rest of the world. One tax expert says the rest should fall in line quickly. Canada could also readily fall in line; previously the country raised concerns about the cost of updating technology to comply. The reason for companies complying more readily is because an agreement makes it easier for the member country’s banks to comply with the FATCA requirements. Also, instead of providing info to the IRS, the banks would provide it to their own government.
Title VII ticking clock.
As was noted in our August addition of International Treasurer, with the CFTC’s release of its swap definitions, end-user exemption rule and implementation timetable, the reality of central clearing for standardized derivatives will soon be upon us. How ready are companies? And what will some companies do in terms of if inter-affiliate clearing rule; there is some concern this rule – requiring margining – could apply to companies with financing arms and also in-house banks. Currently the rule does not apply to non-financial corporates.
Tech helping treasury evolve.
Today’s world of treasury management includes the challenge of controlling business risk across all operations of the corporation. These heightened expectations call for the treasurers to improve performance and add financial value enterprise-wide. We’ll take a look at the continual improvements in technology that are helping to get the critical information needed to be successful in this strategic role. Also, we’ll explore two technology trends that are helping in this regard are the development of solutions that help treasurers get faster and better access to real time data and the integration of disparate systems.