View more on these topics

Lords warn that 70% of transaction taxes will be paid by City of London

The House of Lords European Union committee has slammed European Commission proposals for a financial transaction tax, saying it has failed to make a case for the levy and warning over 70 per cent of its revenue could come from the City of London.

In September, the EC proposed imposing a tax of 0.1 per cent on the buying and selling of bonds and shares and a tax of 0.01 per cent on the buying and selling of derivatives.

The House of Lords’ report into the future funding of the EU, published last week, says it would be “unsuitable” to use the tax to fund the EU after the commission claimed it could contribute €37bn a year, almost 23 per cent of EU funding, by 2020.

The report says: “Firstly, the tax is likely to fall disproportionately on a minority of member states, and especially the UK, which could account for 71 per cent of overall revenue under the Commission’s proposal. Secondly, we cannot identify any genuine link between EU policy objectives and an FTT.

“The Commission has failed to make a case for an EU wide financial transaction tax.”

The UK refuses to back an EU-wide transaction tax, with Chancellor George Osborne warning in last November’s autumn statement it would hit savers rather than banks.

Baronworth director Colin Jackson says: “Institutions will not take the hit, endusers will, so they should scrap it.”

Recommended

Osborne to set out bank reform plans

Chancellor George Osborne will set out plans for structural reform of the banking sector in line with the recommendations of the Independent Commission on Banking in his Mansion House speech next month. The Treasury is expected to publish a white paper before Osborne’s speech on June 14. The ICB’s final report, published in September, calls […]

6

FSA sets out draft crisis plan rules

The FSA has told banks and investment firms they must have definite recovery and resolution plans in place to deal with financial stresses and potential failure. The regulator has today published a feedback statement setting out draft rules firms will have to follow. The final rules, which are applicable to all deposit takers or investment […]

Schroders adds four ICE recruits to boost emerging market debt

Schroders has strengthened its emerging market relative return team with the appointment of four managers from California-based firm ICE Canyon. James Barrineau joins the firm’s New York office as head of Latin American fixed income and co-head of EMD relative, reporting to Schroders global head of fixed income Karl Dasher. He will work alongside head […]

European mortgage directive delayed again

A key stage in voting through the European mortgage directive has been delayed for the fourth time. The European Parliament’s Economic and Monetary Affairs committee was due to vote on its amendments to the legislation yesterday, but this has now been delayed until May 14. The vote was originally scheduled to take place in December […]

To be and not to be – Multi asset investing with conviction

At Pictet Asset Management we believe active management of asset allocation is the most important generator of returns. What is not to be in our portfolio is just as important as what is to be because good performance is determined as much by the assets you avoid as by those you hold. The FP Pictet Multi Asset Portfolio managers are not wedded to any particular […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com