3 March 2009
Proposals to amend US QI audit rules – grossly unfair and a data security risk - says APCIMS
In a response to a consultation on proposed amendments to US Qualified Intermediary tax rules, the Association of Private Client Investment Managers and Stockbrokers is calling on the Internal Revenue Service to ensure that changes are proportionate and cost-effective.
Andy Thompson, Director of Operations at APCIMS said:
“The QI regime continues to be an administratively burdensome and costly regime to APCIMS member firms, particularly as they have very few, if any, US clients. One firm has costs of £215,000 of which audit represents just under 25 per cent compared to reportable income of $175,000 ($5,000 tax deducted) for calendar year 2007.
APCIMS believes that amendments to the process which will require the involvement of American auditors will be costly, unnecessary and may constitute a breach of Data Protection Act in the UK.
Andy Thompson said:
“There is no need for UK firms to endure the increased costs through having to use US external auditors. IRS already have appropriate powers as all of the big UK audit firms are registered with the Public Company Accounting Oversight Board (PCAOB). PCAOB has broad investigative and disciplinary authority over registered public accounting firms and utilising this provision will meet the IRS’ aims of accuracy and accountability in the QI audit process.
“Ultimately we believe the burden should fall on the audit firms rather than QIs themselves.”
- ENDS-
For more information please contact:
Dirk Paterson, Head of Communications, APCIMS
on 020 7448 7100
Mobile: 07944 866 286
Email: dirkp@apcims.co.uk
Notes to editors:
APCIMS
- More than 12 million people in the UK currently invest directly in stocks and shares and other financial instruments to secure their financial futures
- APCIMS represents over 140 firms all over the UK who deal primarily in stocks and shares on behalf of individuals and the institutions in which we have our money
- Around £400 billion of the country’s wealth is under the management of our members
- Our aim is to ensure that the regulatory, tax and other changes across Europe minimize impact on the investment community
- We want to lead the debate on regulation in Europe, with UK regulators and with British parliamentarians to make sure consumers are protected while at the same time our industry flourishes in the UK
Public Company Accounting Oversight Board (PCAOB)
- Under Sarbanes-Oxley Act 2002 PCAOB is required to “oversee the auditors of public companies in order to protect the interests of investors and further the public interest in the preparation of informative, fair, and independent audit reports”.
- The PCAOB also has the power to impose sanctions designed to “deter a possible recurrence and to enhance the quality and reliability of future audits
- Under Section 105 of the Sarbanes-Oxley Act 2002 the PCAOB has broad investigative and disciplinary authority over registered public accounting firms.