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ABI and Apfa unveil guidance

The ABI and Apfa have joined forces to launch a guide on changes to the law regarding customer reporting and self-certification for financial advisers and life insurers.

The Common Reporting Standard, an OECD initiative, will come into effect in stages, beginning in January. The standard will require financial institutions to establish the tax residency and certain other details of their customers and share it with HMRC as appropriate.

The changes form part of an international initiative to tackle tax evasion.

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According to the ABI and Apfa, the guide suggests how information including tax residency should be collected, looks at where responsibility sits and includes suggested self-certification forms.

David Jordorson, taxation policy adviser at the ABI, said: “Insurers have been co-operating with regulations regarding the international exchange of information for many years. Our members see the benefit in formalising these processes further.

“The guidance we have produced supports insurers and financial advisers in meeting the new and existing requirements while helping to minimise the cost of compliance, and reducing the potential impact on customers.”

Adviser view

Andrew Day, principal director of Manchester-based Depledge Strategic Wealth Management, said: “It seems that the walls are caving in everywhere we look.

“There always seem to be new changes or a new piece of legislation requiring us to disclose more. I’m not to sure whether tax disclosure has been an issue for advisers.”