Hedge funds set to leave London for lower taxes
Monday, November 30, 2009 : PermalinkNew York (HedgeCo.net) – Some hedge funds are considering a move to Switzerland or Asia as the European Union doles out new taxes and regulations. The hedge fund industry is worth over $377 billion in Europe, the Associated Press reports.
“There was bound to be a reaction of some sort, when these kind of changes are made,” Andrew Schneider, co-founder of HedgeCo, said, “The industry as a whole has bounced back in dramatic fashion. If the EU commission wants to set up a watchdog system for hedge funds, investors and markets, there is sure to be an opening for competition from emerging markets and countries with lower taxes.”
When HSBC disclosed that it was reviewing the placement of its headquarters, it fuelled fears of an exodus of leading companies. Three FTSE250 firms disclosed in October that they were leaving London. Among key tax concerns include government proposals to begin taxing “non-domiciled” foreign staff.
European Union lawmakers have also said that hedge fund managers in the UK may be subject to the same kind of restrictions and bonuses currently being imposed on regular banks to limit rewards for short-term success.
Alex Akesson
Editor for HedgeCo.net
alex@hedgeco.net
HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership in HedgeCo.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!