Markit Launches Tax Compliance Solution

Financial information services provider Markit has launched CTI Tax Solutions, a tax utility service that supports compliance with the US Foreign Account Tax Compliance Act (Fatca).

Markit designed the utility in collaboration with Deutsche Bank, HSBC and Morgan Stanley, using its existing Counterparty Manager database of 113,000 legal entities including buy-side firms and corporates.

"We are uniquely positioned to offer clients cost savings and more robust regulatory coverage as they manage their Fatca and other rules like the Common Reporting Standard [CRS]," says Jon May, managing director and global head of regulatory and compliance managed services, Markit. "This is a natural extension of our regulatory compliance and tax ecosystem to enable our customers to meet KYC and specific Fatca requirements."

According to Markit, more than 650 buy-side firms and corporates have signed up to the utility, and the service has validated over 21,000 tax forms. It is on target to have more than 30,000 forms validated by the June 30 Fatca compliance deadline. The company plans to extend the utility later this year to support CRS reporting.