Once again, our review of hot topics in tax is dominated by issues arising from the financial crisis and from policymakers’ regulatory response. The details of new financial services regulation, especially as they impact on tax matters, remain obscure in many respects. But the broad thrust is slowly becoming clearer. And it is certain that no part of the financial services industry will remain untouched.
KPMG’s three Regulatory Centers of Excellence regularly review the major issues clients are facing from a regulatory perspective. In recent months, the extent of the likely impacts on banking, insurance and investment management has become more comparable. Whereas it was possible in early 2011 to argue that insurance companies or hedge funds might be spared the most challenging new requirements being formulated for the banking sector, now there seems to be no such possibility. The financial services sector as a whole is going to share the burden.