The Cayman Islands funds industry is living in a state of ‘suspended disbelief’ concerning its response to the Foreign Tax Compliance Act (FATCA), according to a new report from DMS Offshore Investment Services.

The DMS report says that as the rest of the world marches inexorably towards the implementation of FATCA on July 1 this year, several widely circulated myths are interfering with the timely preparation that Cayman Reporting Financial Institutions (CRFIs) should be making on their own behalf, for the benefit of their investors, to avoid the severe penalties for non-compliance that FATCA dictates.

To read more about what DMS refers to as the ‘Seven Deadly Myths’ and how those who subscribe to them could find themselves facing potentially crippling circumstances after 1 July, download the report here.