Asset managers warn European Tobin tax will damage industry

Leading UK asset managers have warned against the implementation of a new tax, which could be imposed Europe-wide on all financial transactions.

Investment houses including Aviva Investors and Martin Currie said proposals from the European Commission to raise additional funds via a further tax on the investment industry will hammer returns, and risk turning investors away from European domiciled investments. Jeremy Soutter, global head of products at Aviva Investors, said the proposed tax had the potential to “massively eat into returns in an environment when you are only getting between 3% and 5% per annum”. “This is not a tax on banks it is a tax on individuals – retail investors and everyone with a pension will be penalised...