The upcoming April 30 deadline for registration on the Cayman Foreign Account Tax Compliance Act (Fatca) portal marks another milestone but could prove a significant test for the industry, according to Mitsubishi UFJ Fund Services. 

The short window in which to prepare for the portal being available, and the fact that it participants will have to be able to process both US and UK Fatca regulations, means that managers will have a significant challenge in being prepared on time.

"It is vital managers are confident in their Fatca process be it in house or outsourced," said Tim Thornton, chief data officer, Mitsubishi UFJ Fund Services. “The requirement for notification or authority letters to be prepared and filed where registration is handled by a third party on behalf of the fund adds to the time crunch."

"Considering the number of entities that will have to register this will be a significant test both of the readiness of firms and service providers, and of the robustness of the portal registration process."

Additional IGA 1 countries to the Cayman are opening similar portals with registration requirements that will likely vary slightly from one another. Being across these nuances between different regulators may also be a significant task, says Thornton.

The first reporting deadlines begin on May 31 for the Cayman Islands.

"By this point firms impacted should be comfortably running Fatca compliance programmes and a considerable way through all catch up exercises on pre-existing investors.”