Analysis by the European Fund and Asset Management Association (EFAMA) highlights that the public does not appreciate what the EFAMA describes as "the very significant cost impact that the Financial Transaction Tax (FTT) would have on the long-term savings of EU citizens."
The EFAMA estimates that had the tax been applied from the start of 2011, the annual total would have reached €38bn. This sum would have been made up by investors paying €15bn on the sales and redemptions of UCITS shares/units, and UCITS fund managers paying €23bn on the sales and purchases of securities. The consequences of such a tax, predicts the EFAMA, would put many money market funds out of business - who would pay 67% of the tax - and reduce the overall attractiveness of long term savings in equity, bond and balanced funds as well. Such a loss would in turn reduce an importa...
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