Canadian Life and Health Insurance Association Inc.

Updated FATCA Information for clients

Release Date: 07/10/2012

Circular Number: 6215
Staff Reference: Peggy McFarland

Attached is an updated information sheet for clients of Canadian financial institutions to help them understand how the US Foreign Account Tax Compliance Act (FATCA) might affect them. This document was prepared by the CLHIA along with the associations representing the Canadian banks, investment industry and mutual funds and has been updated based on the February 8 draft FATCA regulations. This revised document will be posted on CLHIA's website as well as the websites of the other three associations. Member companies are welcome to use this document to help educate their clients about FATCA.

The information is current as of June 2012. The IRS and Treasury have not yet provided final regulations as to how FATCA will apply to financial institutions. The information sheet will be updated as additional information becomes available.

FATCA will apply to life insurance with cash value and annuities. The CLHIA is continuing to work towards obtaining exemptions for products that do not pose a risk of tax evasion (such as registered products and small policies).