JP Morgan Investor Services says both the International Securities Services Association (ISSA) and the Group of Thirty (G30) have agreed that its proposals for improving efficiency in tax reclaims make sense.
The giant custodian bank has suggested that the tax reclaim component of Recommendation 8 of the 2003 report by the G30, Global Clearing and Settlement: A Plan of Action – which urged the securities industry to “automate and standardise asset servicing processes, including corporate actions, tax relief arrangements, and restrictions on foreign ownership” – can be met by its so-called Tax Relief Model.
Morgan is recommending standardization of tax relief arrangements, and the creation of platform that facilitates automation of associated procedures and the electronic communication of associated data. The banks adds that this will also minimize costs.
The proposal is currently subject to review and comment by other industry groups and interested parties, but both ISSA and the G30 have expressed their approval.
JPMorgan was a contributor to the 2003 G30 report. On 12 April this year the G30’s Monitoring Committee on global clearing and settlement released an interim report of progress on the 20 recommendations set forth in the original 2003 document.