Page 52 - CAPE Financial Services Syllabus Macmillan_Neat

UNIT 2
MODULE 2: COMPLIANCE LEGISLATION AND STATUTES (cont’d)
SPECIFIC OBJECTIVES
Students should be able to:
12. explain the significance of the
Foreign Account Tax Compliance
(FATC);
13. discuss the concept of a Ponzi
scheme and its legal implications;
CXC A38/U2/16
CONTENT
(a) Foreign Account Tax Compliance
(FATC):
(i) tax-efficient structure;
(ii) investment products; and,
(iii) offer complementary services
targeted at specific groups.
Explain the significance of the Foreign Account
Tax Compliance (FATC).
(a) Definition of the concept.
(b) The structure of Ponzi schemes.
(c) Ponzi enforcement, Ponzi schemes vs.
illegal pyramid schemes.
(d) How Ponzi schemes are identified:
(i) high investment returns with
little or no risk;
(ii) overly consistent returns;
(iii) unregistered investments;
(iv) unlicensed sellers;
(v) secretive and complex
strategies; and,
(vi) issues with paper work.
(e) Securities Exchange Commission (SEC)
lawsuits:
- Insider trading cases: financial
professionals, hedge fund
managers, attorneys, and
accounting fraud.
(f) Regulating Ponzi schemes. (Study
cases related to different Caribbean
territories).
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