1. © Allen & Overy 2012 1 Stephen Fiamma, US Tax Partner, London Office Presentation to ICMA Members September 2012

2. © Allen & Overy 2012 2 FATCA and capital markets: Payment chain with U.S. Issuer and multiple FFI intermediaries Non-PFFI Clearing System 1 PFFI 50% PTP E.g. interest Paying Agent PFFI 20% PTP $600 $1,200 Clearing System 2 Non-PFFI No PTP PFFI U.S. Corp PFFI participating foreign financial institution Non-PFFI non-participating foreign financial institution PTP passthru payment percentage intermediary (e.g. paying agent, clearing system, agent bank) beneficial owner ($0)withheld amount $420 ($180) $140 ($60) PFFI Non-PFFI $200 $140 PFFI (broker) Compliant individual PFFI (broker) Compliant individual $200 $140

3. © Allen & Overy 2012 3 FATCA and capital markets: Passthru payment chain with FFI Issuer Clearing System 1 PFFI 50% PTP E.g. interest Paying Agent PFFI 20% PTP $600 $1,200 Clearing System 2 Non-PFFI No PTP PFFI 10% PTP PFFI participating foreign financial institution Non-PFFI non-participating foreign financial institution PTP passthru payment percentage intermediary (e.g. paying agent, clearing system, agent bank) beneficial owner ($0)withheld amount $582 ($18) Non-PFFI PFFI $194 ($6) PFFI Non-PFFI $200 $194 PFFI (broker) Compliant individual Compliant individual $200 $194

4. © Allen & Overy 2012 4 FATCA and the secondary markets: Payment chain with FFI Purchaser Clearing System PFFI 50% PTP $800 $1,200 PFFI 10% PTP (purchaser acting as own clearing bank) PFFI participating foreign financial institution Non-PFFI non-participating foreign financial institution PTP passthru payment percentage intermediary (e.g. paying agent, clearing system, agent bank) beneficial owner ($0)withheld amount Non-PFFI (seller acting as own clearing bank) $360 ($40) PFFI (clearing bank) Non-PFFI (broker) $400 PFFI (broker) Complian t individual (seller) $400 PFFI (seller) $360 ($40) PFFI (account bank)