Concerns over 871m rule based on administrative and operational burden, Bloomberg

The provision to charge foreign investors a 30% tax on dividend equivalent payments on derivatives and structured notes linked to US securities under the new US Internal Revenue Service (IRS) 871m could trigger a withholding obligation on millions of new structured investments. The structured products market remains unclear as of to what extent the new tax could affect the issuance of products linked to US underlyings, as suggested by the decision of some Swiss issuers to put on hold the sale of