This represents the latest development in a series of EU initiatives involving automatic exchange of information. Under these rules, intermediaries and taxpayers have an obligation to report certain cross-border arrangements which involve one or more of a list of specified hallmarks.
MDR is likely to be a key challenge for businesses, and will present a significant compliance burden for groups dealing cross-border with differing requirements in EU Member States. KPMG globally have developed a software tool to assist clients in managing the compliance burden, providing an audit trail and reporting capabilities across the relevant jurisdictions.
More information regarding MDR is set out in the summary overview below.
Please contact us if you would like to discuss the details around MDR further or to arrange a demo of our MDR software tool.
The Mandatory Disclosure Requirements (MDR) or DAC 6 directive for intermediaries and relevant taxpayers will apply from 1 July 2020, with retroactive effect. Most Member States have now transposed the new reporting rules into domestic law but are yet to publish detailed implementation guidelines, meaning there continues to be a high degree of uncertainty around the application of MDR in practice.
With particular relevance for financial services businesses, local implementations of the rules continues to be actively monitored by potentially impacted groups as they seek to understand the practical impacts in the way they operate globally. Based on what is known so far on domestic implementation, it is apparent that there is divergence across jurisdictions, including on crucial terms such as the “main benefit test” and “intermediary”, as well as many of the "hallmarks". With no one common approach many financial services organisations with an extensive European footprint are likely to face challenges in implementing a robust process across the organisation.
This webcast explored the evolving impact of MDR across the financial services sector. Our panel shared their insights on the latest developments of this far reaching legislation, highlighted key themes and potential areas of difficulty and also discussed current industry best practices. With a particular focus on how the rules may apply to banks, insurers, asset managers, and other financial services businesses. We also took a closer look at the differences between a number of key locations and the best in class steps that multinational institutions are taking to address the practical issues arising.
Watch the replay here.
View the presentation here.