Clearstream Banking and BearingPoint RegTech partner to develop software for TRACE
BearingPoint RegTech, an international provider of regulatory, risk, and supervisory technology solutions (RegTech, RiskTech, and SupTech) is developing a solution to cover arising reporting obligations for the new regulation TRACE (Treaty Relief and Compliance Enhancement).
The development is a joint project with their customer Clearstream, who registered as Authorised Intermediary for TRACE Finland.
TRACE was co-developed by the OECD, the financial industry and tax administrations with the idea to enable investors to easily and effectively claim the reduced rates that they are entitled without excessive administrative burden. Created to standardise the procedures for providing treaty relief at source, its functionality is very similar to the US Qualified Intermediary (QI) and the Irish QI regimes.
“Having a single platform that supports us in meeting both QI and TRACE reporting requirements will help leverage synergies between both regimes, streamlining processes and minimising efforts connected to tax reporting,” says Thilo Derenbach, Head of European Custody Product at Clearstream.
“We are delighted to partner with Clearstream for the development of our new FiTAX module. Partnering with an important market player will allow us to ensure that our solutions address the market’s needs,” says Fabrice Chatelain, Product Director FiTAX at BearingPoint RegTech.
The new module for TRACE will be developed on the platform of BearingPoint RegTech’s established and proven tax reporting solution FiTAX. FiTAX is a modular, standardised, ready-to-use tax reporting solution that meets the reporting requirements of QI, QDD / 871(m), FATCA, CRS/AEOI and DAC6/MDR reporting. FiTAX is used by more than 3,200 institutions and covers reporting for more than 138 countries from data collection to direct upload of encrypted reporting files to the portals of the tax authorities.