EU financial transaction tax proposals would hit pensions hard, say experts

Pension funds could soon have to bear the cost of a Europe-wide tax on equity, bonds, currency and derivative transactions, finds Lynn Strongin Dodds

A tax on financial transactions may be firmly on the European Union agenda, but there is already dissension in the ranks not only among member states but also financial experts, trade associations and institutional investors. The details are still being hammered out but there is no doubt that if imposed, pension funds will have a high price to pay.

As Grant Thornton head of pensions, Ian Hartnell, put it: “It is too early to predict the exact outcome but if it goes through, the impact on