Wednesday, 17 December 2014
Last updated 4 hours 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.”
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
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