Bloomberg moves to address new US 871 (m) requirements

Bloomberg has rolled out a 871(m) tax solution in a move to cash in on the new Internal Revenue Service (IRS) withholding requirement's for global investment companies which is expected to come into effect on January 1, 2017. The provision aims to tax foreign investors on derivatives and structured notes linked to US securities, as well as other investment products linked to equity indices. The rule requires qualified intermediaries, such as custodians or issuers, to act as withholding agents.