No Exemptions: The Financial Transaction Tax and Pension Funds

Network for Sustainable Financial Markets, December 2012.

This report from leading financial experts explains why pension funds must not be exempt from the Financial Transaction Tax (FTT) which is set to be implemented across much of Europe in 2013. 

We know from experience that exemptions of any type will be exploited to the detriment of the tax’s effectiveness, for example the tax could be avoided by trades re-casting themselves as pension funds, or other forms of creative accounting.  This would reduce both revenue and the FTTs contribution to a more stable, less short-term focused market.

The authors also explain that, by discouraging funds from ‘inappropriate’ turnover in favour of more traditional and stable forms of long-term management, an FTT would actually be good for the pensions fund sector.

You can download the full report here