PIMFA Responds to Financial Transaction Tax
Thursday 21st November 2019
PIMFA, the UK’s leading trade body for the financial advice and investment management industry, has today warned that the additional costs inherent in the introduction of a financial transaction tax will ultimately be passed on to the consumer.
Commenting on Labour’s revenue raising proposal, Liz Field, Chief Executive, said:
‘PIMFA’s members, who manage investments and savings for UK retail investors and are a key source of personal wealth generation in the UK, rely on retail market makers to provide continuous two-way prices across a wide variety of tradeable instruments. These market makers provide liquidity and are ultimately the ‘oil’ that greases the wheels of the stock market which millions of UK investors rely on when they are building financial resilience for every-day life and retirement. Whilst we understand the logic behind these proposals, we believe that they are ultimately based on an outmoded caricature of those who operate in financial services. Ultimately, were Labour to bring in a financial transaction tax, the additional costs would end up being passed on to individual retail investors. We believe this runs counter to the broader aims of the Labour manifesto.
‘PIMFA has campaigned for the removal of Stamp Duty Reserve Tax and, before that, Stamp Duty for many years. The introduction of a Financial Transaction Tax, where both purchase and sale transactions attract a duty, is in our view a step in the wrong direction, away from encouraging retail share ownership. Whilst we welcome many of the proposals set out in this manifesto, this is ultimately one which benefits the few rather than the many.’
Notes for Editors
About PIMFA – the Personal Investment Management & Financial Advice Association
- PIMFA is the leading trade association for firms that provide investment management and financial advice to everyone from individuals and families to charities, pension funds, trusts and companies.
- The sector currently looks after £1.3 trillion in private savings and investments and employs over 55,000 people.
- PIMFA represents both full and associate member firms. Full members provide a range of financial solutions including financial advice, portfolio management, as well as investment and execution services. They assist everyone from individuals and families, to charities and pension funds, all the way to trusts and companies. Associate members provide professional services to the PIMFA community.
- PIMFAleads the debate on policy and regulatory recommendations to ensure that the UK remains a global centre of excellence in the wealth management, investment advice and financial planning arena. Our mission is to create an optimal operating environment so that its member firms can focus on delivering the best service to clients, providing responsible stewardship for their long-term savings and investments.
- PIMFA was created in 2017 as the outcome of a merger between the Association of Professional Financial Advisers (APFA) and the Wealth Management Association (WMA) with a history as a trade association since 1991 – read more.
- Further information can be found at pimfa.co.uk
- To become a member of PIMFA for access to training, benefits and discounts, please visit https://www.pimfa.co.uk/become-a-member or contact us directly at [email protected]
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