NAPF comment on European Court ruling on UK challenge of Financial Transaction Tax

The National Association of Pension Funds (NAPF) today (Wednesday) commented on the European Court of Justice’s (ECJ) ruling on the UK’s challenge to the introduction of an European Union (EU) financial transaction tax (FTT).

James Walsh, Policy Lead:  EU & International, NAPF, said:

“The FTT is not the best way to reduce excessive risks or tackle bad behaviour in the markets. In addition, the cost of this tax would undoubtedly be passed on to the millions of private savers and pension scheme members in the UK by the financial institutions and banks that manage their investments. 

“The Government is right to challenge the tax’s legality as it is highly likely that it would affect UK pension schemes and their members.  The ECJ is not saying the UK’s challenge is wrong, only that it is premature because the details of the tax are not yet clear.  By challenging the FTT’s legality now, the UK Government has protected its right to make a more detailed challenge later, once the full proposal is available. 

“The NAPF urges the Government to remain vigilant against this threat to British savers and pensioners.”

Notes to editors:

The NAPF is the leading voice of workplace pensions in the UK. We speak for 1,300 pension schemes with some 16 million members and assets of around £900 billion. NAPF members also include over 400 businesses providing essential services to the pensions sector.

Contacts:

Lucy Grubb, Head of Media and PR, NAPF, 020 7601 1726 or 07713 073023, [email protected]

Eleanor Bennett, Press Officer, 020 7601 1718 or 07825 171 446, [email protected]