The European Banking Federation has published a key information document in relation to the proposed Financial Transaction Tax (FTT) (first proposed on 14 February 2013).

The proposed FTT legislation focuses on financial institutions (FIs) and the tax will be charged on the execution of a financial transaction involving a FI connected to the FTT zone (the 11 member states as defined).

This publication outlines some of the concerns expressed in relation to the FTT and which concerns are based on: (i) the negative impact the tax would have on market efficiency and liquidity; (ii) its hindrance on achieving regulatory objectives; (iii) the clear lack of global support for such a tax and related potential competitive distortions; and (iv) its harmful economic impacts.