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ABI and APFA launch new guidance on tax residency information for insurers and financial advisers

The Association of British Insurers (ABI) and Association of Professional Financial Advisers (APFA) have published updated joint guidance for insurers and financial advisers on the tax information requirements for new customers following changes to UK tax regulations.

The new requirements, under UK automatic tax information exchange agreements including Foreign Account Tax Compliance Act (FATCA), OECD Common Reporting Standard and Crown Dependencies, require life insurers to know the tax residency status of their customers acquiring certain life policies and purchased life annuities. This will include both purchases and assignments of products.

Given the close working relationship between the insurance industry and the financial adviser community, the ABI and APFA have co-operated to assist compliance with the new requirements.

The Know Your Customers' Tax Residency Guide (pdf 656kB) sets out the ABI and APFA’s views on:

  • How the roles and responsibilities of both the insurer and the financial adviser could be divided
  • How to collect tax residency information for new policies
  • How to fill out the suggested confirmation of verification of identity forms
  • Assessing the tax residency of existing policyholders

For more information, download the guide: Know Your Customers' Tax Residency - A guide for insurers and financial advisers (pdf 656kB)

Last updated 01/07/2016