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Financial sector angry at coalition transaction tax, bonus plans

Wednesday 31 October 2012

Financial services companies, and stock brokers in particular, may start moving out of the Netherlands because of the new coalition’s plans, the Financieele Dagblad reports on Wednesday.

Brokers are angry at the government’s surprise plan to introduce a ‘financial transaction tax’, the paper says. At the same time, plans to limit performance-related bonuses to 20% of fixed salary have infuriated bank and brokerage staff.

‘We are going to look at all options to expand our activities in countries like Switzerland and Britain, and to reduce them in the Netherlands,’ Jan van Kuijk, director of trading house Flow Traders told the paper.

U-turn

The sudden backing for the transaction tax is a complete u-turn for the government which until now has been strongly opposed, the paper points out.

Outgoing finance minister Jan Kees de Jager has warned of its damaging effect on shares and derivatives trading. The central bank, financial services authority and planning office CPB are also opposed.

Accepting the transaction tax would be ‘a stupid move’, Floris Deckers, chief executive of Van Lanschot Bankiers told the paper.

‘Brokers, managers, market-makers en stock exchange-related companies will go. Thousands of jobs will be lost,’ Robin Fransman, deputy director of umbrella group Holland Financial Centre is quoted as saying.

Exception

A group of EU countries are planning to press ahead with the measure without the rest. ‘The Netherlands will join this on condition our pension funds remain exempt,’ the coalition agreement states. It is not clear if this is possible, the FD points out.

The European Commission estimates a transaction tax would generate €3bn for the Dutch treasury.


Do you work in the financial sector? Share your thoughts using the comment box below.

© DutchNews.nl



 

Readers' Comments

in order for a better world all derivatives should be banned for good and especially America and Britain should be scrutinized thoroughly.hedge funds venture funds should be abolished immediately.easy money without production gone.

By toria | 31 October 2012 8:18 AM

So what if the finacial sector is angry? They can't be half as angry as the milions of people worldwide who have been screwed by their shady deals and stolen money. Let them go!

By Al | 31 October 2012 8:32 AM

after working in this sector, I can tell you that these restrictions (and many more) are very needed. many management people in this industry think they are more important and powerful than God - the male ego problems are HUGE and there are lots of things happening that are not in our public interests at all. this is all about to be corrected fortunately. these financial institutions may move to a temporarily more advantageous country, but the same thing will happen there also eventually. no one outside of this industry is happy about what has been going on, not here and not anywhere else in the world either.

By emma | 31 October 2012 8:40 AM

agree with above, but maybe instead of a tax, what about putting these bankers in jail. that is a beter option

By jock | 31 October 2012 8:43 AM

There are many ways to collect this money just do not call it a 'tax'.

By ufo | 31 October 2012 8:45 AM

It's one thing to shoot yourself in the foot out of carelessness or impetuosity, but to know all the facts and then take deliberate aim is unbelievable.

By Realist | 31 October 2012 9:22 AM

@jock. Please don't jail them, enough of the taxpayers money has been spent on them already, we don't want to also foot the bill for their 'bed and board'.

By jaycee | 31 October 2012 9:27 AM

You need capital to start a new business, so you need venture capital, you need a mortgage to buy a house, you need a bank, you need an efficient market to save for your pension, you need brokers, fund managers, and hedge funds. This policy is a joke on us all, its arrogant, essentially a blame game assuming we're all stupid.

By Jan | 2 November 2012 9:12 AM

So far the banksters have robbed far more money than any bank robbers, let's just leave it at that!

By The visitor | 2 November 2012 6:32 PM

Jan, yes indeed we need them, but we also need them to act responsibly and fairly. this is the direct result of many people in the financial markets that just kept taking taking and taking - risks with our money. they seemed to know no boundaries in taking risks with our money. these taxes are a form of 'boundary' for these people and institutions.
this is only the beginning. stiffer regulations regarding trading will be implemented soon which will form a second boundary.

By george | 3 November 2012 1:20 PM

 
 
 
 
 
 
 
 
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