As the wealth management industry grapples with the potentially costly impact of US anti-tax evasion laws, financial software firm Advent has published a new report on how firms should adapt.

Advent Software’s report examines the main features of FATCA (Foreign Account Tax Compliance Act). The act, passed last year, imposes a 30 per cent withholding tax on foreign financial institutions that fail to show they have undertaken to indentify US account holders. A number of banks such as Société Générale have warned the legislation will add to costs and in some cases, drive banks away from serving US foreign national and green card holders.

“With such an increase and continuation of new legislation being introduced into the financial industry, it is essential to know how best for one to manage their portfolio and gain the best possible returns in this highly regulated environment,” Advent Software said.

Firms such as Advent and SunGard argue that mounting due diligence burdens will drive demand for technology.

To view the report, click here.