the international financial industry is now turned upside down by US antifraud law

"Observers said fund managers are becoming more conservative in the wake of global developments such as the U.S. Foreign Account Tax Compliance Act and other U.S. efforts.

Following large settlements paid to the U.S. by Credit Suisse Group AG and BNP Paribas SA, "Other countries are getting angry about the size of the fines and are grumbling about retaliation," said Jonathan Lachowitz, a cross-border investment adviser based in Lexington, Mass., and Lausanne, Switzerland.

Mutual funds are regulated differently from other investments and could be a target, he said.

David Kuenzi, an investment manager in Madison, Wis., who works with Americans abroad, said that selling U.S. mutual funds to those investors had long been prohibited. "But it was matter of 'Don't ask, don't tell.' Now the firms are getting more aggressive about compliance," he said.

A spokesman for Putnam Investments said the firm is no longer accepting additional investments into existing accounts held by non-U.S. residents.

The spokesman said the changes were made "in accordance with U.S. anti-money-laundering and 'Know Your Customer' policies" and in response to recent tightening of European laws limiting sales of funds not registered in their jurisdictions.
http://finance.yahoo.com/news/fidelity-bans-u-investors-overseas-230700640.html

this is a fundamental change that will change the Financial industry for ever - especially after the enormous fines that BNP-Paribas has received and which are the real incentive for every US firm to abide by the rules nobody cared about before.

this is a bit like our information securitypolicy - don't ask and we don't do anything and as long as there are no fines, we really don't care

and you just need one big victim paying a big fine to get a whole industry moving out of fear of being the next one

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