Tuesday, 29 July 2014
Last updated 29 min ago
Apr 17 2007 | 9:55am ET
Concerned by London’s dominance of the European hedge fund industry, Swiss officials are considering a dramatic tax cut to make their country more alluring to hedge fund managers.
The Swiss banking federation has proposed a 10% tax rate for top hedge funds, The Telegraph reports, and Swiss Finance Minister Hans-Rudolf Merz says he is considering the move.
Hedge fund managers are currently subject to a marginal tax rate of approximately 45%.
“It’s an idea I’m carrying around,” Merz, who has been meeting with leaders of the Swiss financial community, said. “The financial marketplace is of enormous importance to our country. I know that we have a disadvantage in taxes. We understand the problem, and we have to solve it.”
But Merz added it was unrealistic to expect Switzerland to supersede London—home to 80% of Europe’s hedge fund assets—saying London is “too strong” for a “frontal attack.” Instead, he told Bloomberg News, “It’s absolutely vital that there’s a certain competition.”
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…