Politics & Regulation

Future of UCITS in danger from FTT, says fund association chief

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The Financial Transaction Tax will make UCITS funds unattractive for long-term savers, according to Peter de Proft from the European Fund and Asset Management Association.

The proposed tax will cause retail and institutional investors to switch their savings away from UCITS and towards savings deposits and life insurance products that are not covered by the FTT.

The FTT, which is also known colloquially as the Robin Hood tax or the Tobin tax, has been proposed as a response to the trillions of dollars that the financial services sector has received in bail-outs since the beginning of the credit crunch. Some