Investment Funds’ performance and Financial Transactions Tax


Investment Funds’ performance and Financial Transactions Tax

An equation with multiple unknowns

The European Commission published its revised proposal for an EU Financial Transactions Tax (EU FTT)1, which is expected to generate approximately €30 to 35 billion per year.

Executive summary

This draft directive provides for the introduction of a tax on financial transactions at a minimum2 rate of 0.1% for transactions other than derivatives and 0.01% for derivatives transactions3. While the FTT is proposed to enter into effect on 1 January 2014 (now possibly postponed to a later date due to UK's legal challenge against the FTT), the timetable will obviously depend on the European Council reaching an agreement on the proposal.

The introduction of an EU-wide financial transactions tax is likely to have a significant impact on fund industry performance and attractiveness. Below we detail the key characteristics of the Commission’s proposal and its potential impacts as far as investment funds are concerned. 

PDF file - size: 435kb

Performance issue 11 - May 2013

Performance is a triannual digest, dedicated to investment management professionals, which brings you the latest articles, news and market developments from Deloitte’s professionals and clients. 

PDF file - size: 4.6mb
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