A round table group of financial institutions has written to the French Minister of Finance in advance of the Cannes summit. The group stresses:
- that increased regulation will lead to more incentives to transfer business into less strictly regulated institutions and markets and so increase the risk of regulatory arbitrage;
- that the proposed FTT may lead to double taxation in some countries which are already introducing levies on a different basis; and
- concern over the increased tendency to apply regulatory concepts across market sectors, when this is not always appropriate.
(Source: Round Table Writes on Concerns)