Saxo Bank informs its WL partners of regulatory changes on publicly traded US partnerships
Multi-asset investment specialist Saxo Bank has issued a notice to white labels regarding regulatory changes on publicly traded US partnerships.
The Internal Revenue Service (IRS), and the US Treasury have published final regulations under Section 1446(f), which impose additional withholding, reporting and disclosure obligations on foreign partners interest in US Publicly Traded Partnerships. Failure to disclose imposes additional reporting requirements, as well as an additional withholding tax of 10% on distributions, and disposals made by a foreign partner in their interest in a US PubliclyTraded Partnership (PTP).
It is important to note that the new regulations only impact tradeable US Partnerships securities, including cash stocks and single stock options, and tradeable securities which have a corporate structure remain unaffected. CFDs on the impacted PTP securities are not affected by these changes and restrictions.
You can find a list of impacted securities here.
Due to these additional requirements, effective immediately, Saxo will no longer allow clients to buy these types of securities, and it asks that clients transfer out or close existing holdings before 31 December 2022.
Where the clients under WL setup currently hold any of these securities, the Account Manager will share an impact list. Any holdings which remain on Saxo’s books after this date will need to be reviewed accordingly and Saxo will close any positions as open exposure creates IRS reporting issues since the Regulation comes into effect on 1 January 2023.