ISLA publishes revised 2020 US tax addendum to GMSLA
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ISLA publishes revised 2020 US tax addendum to GMSLA 27 May 2020London Reporter: Drew Nicol
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The International Securities Lending Association (ISLA) has published a revised 2020 US tax addendum to its global master securities lending agreement (GMSLA) 2010, along with supporting guidance notes for members.
The new addendum, ISLA says, provides a broader approach, covering qualified derivative dealer and qualified securities lender statuses concurrently.
The revised version also addresses a number of issues, including but not limited to, Foreign Account Tax Compliance Act non-compliance tax risk on collateral securities that are not substituted ahead of income dates.
Information on the GMSLA Title Transfer framework is available on ISLA鈥檚 website.
The release come shortly after the trade body released four additional to support the collateral pledge version of its pledge GMSLA.
The GMSLA Security Interest over Collateral was first released in 2018 and can be used for securities lending transactions where the collateral is provided by way of security interest.
The new opinions, provided by Freshfields Bruckhaus Deringer, assess the nature of the borrower鈥檚 rights in the pledged collateral and the impact on those rights of the insolvency of the custodian and the lender.
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