U.S.A.: IRC Section 871(m) – Clearstream Banking and Euroclear (the ICSDs) adopt common guidelines with regards to securities issued in the ICSDs - update
Note: This announcement has been superseded with a dedicated page - IRC Section 871(m) guidelines - CBL issued securities
Further to our TaxFlash T16042 dated 6 December 2016, concerning the U.S. Internal Revenue Service (IRS) issuance of Notice 2016-76 on 2 December 2016, which provided guidance on Section 871(m) regulations, Clearstream Banking1 would like to inform customers that the ICSDs have, following numerous discussions with issuers and their agents, adopted common guidelines for securities subject to 871(m) (see attachment below).
Uncertainties still remain about the 871(m) regulations and their market implementation, the common guidelines are however intended to provide a working framework, to allow both ICSDs to be able to accept and handle 871(m) securities in their systems.
To ensure the acceptance of 871(m) securities, issuers are strongly recommended to follow the ICSDs’ guidelines, which will be communicated to them via the relevant channels.
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1. Clearstream Banking refers to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248 and Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.