The EU’s controversial Financial Transactions Tax (FTT) would “hit the pensions and investments of millions of hard working people” and would not exclusively target “so-called City fat cats,” warns the boss of the world’s largest independent financial advisory firm.
The chief executive of the deVere Group, Nigel Green, is speaking as the Association for Financial Markets in Europe (AFME) releases a report today in which, according to Sky News, the European Commission will be warned not to forge ahead with the tax due to the “negative economic impact of deterring financial transactions that bring benefits to the wider economy.”
Mr Green says: “It’s delusional to believe, as some proponents are suggesting, that the Financial Transactions Tax would only affect so-called City fat cats. The levy would also hit those with a pension, life assurance, insurance, a mortgage, or those exchanging cash for their holidays – so the vast majority of people – because in all likelihood the cost of the new tax will be passed on to end consumers.
“It is widely assumed that pensions will be dealt the biggest blow due to the lower returns they would face from the tax of transactions made by pension funds throughout Europe.”
“This fatally flawed, Brussels-led levy would not only hit the pensions and investments of millions of hard working people, it would damage the UK’s financial services industry which is vital to sustainable economic growth.”
He adds: “European policymakers should remember that the EU is only a part of the entire global financial community and the introduction of the FTT would provide international competitors with a significant competitive edge.”
A month ago Britain launched legal proceedings against the Financial Transactions Tax that was agreed by 11 EU member states earlier this year.