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February 16, 2012

MD Physician Services’ position on FATCA

Beginning in 2014 under the U.S. Foreign Account Tax Compliance Act (FATCA), the Internal Revenue Service (IRS) will require foreign financial institutions to report information on documented accounts owned by US persons.

MD Physician Services’ current position, like many other financial institutions worldwide, is to comply with the upcoming legislation. This is because the repercussions of non-compliance—a 30% withholding tax on US source payable income or distributions—are significant to the firm as well as to our investors, including all unit-holders of the MD family of Funds and MDPIM Family of Funds.

We understand and appreciate clients’ concerns regarding the sharing of personal information with the US government, and have discussed these concerns with the Privacy Commissioners Office. As well, on January 26, 2012, MD President and Chief Executive Officer Brian Peters discussed pending FATCA regulations with the Honourable Tony Clement, as part of the federal government’s pre-budget consultations.

The Canadian Medical Association has publicly advocated similar concerns on behalf of all physician members. Read the CMA’s public letter to the Minister of Finance dated November 21, 2011.

MD Physician Services continues to closely monitor the Investment Industry Association of Canada (our industry’s trade association) in our attempts to ensure reasonable, client-centric application of FATCA requirements.

For more information about FATCA, please visit the website of the Canadian Bankers Association.