Carmignac: Tobin tax will hit economic growth

Carmignac's chairman Edouard Carmignac has warned economic growth could weaken as a direct result of the financial transactions tax if it is given the go-ahead.

At an investor conference on Monday, Carmignac, head of the company which runs Europe's largest fund, the €23bn Patrimoine fund, said the tax is "not as fair as it may seem". Last week Investment Week reported the UK fund management industry faces complete transformation if the financial transactions tax - or Tobin tax- is implemented. In the rules' current form, securities would be taxed at 0.1% and derivatives at 0.01%. Carmignac said: "The fate of the tax is far from being a done thing. There are aspects that on the face of it seem attractive but it is poorly understood and I am no...