This morning, China Construction Bank International (CCBI) launched the first ever ETF to be domiciled in the UK, but will others follow suit?
Exchange traded fund (ETF) providers have stayed away from domiciling their funds in the UK due to unfavourable taxation rules, but the relaxation of these rules has opened the door to more launches. Stamp duty on ETFs was abolished with effect from April 2014 in an attempt to bring London into line with other European domiciles and was expected to boost the local ETF market. However, providers have continued to favour launching new products in domiciles outside the UK, such as Luxembourg and Dublin. Yet the launch today could prompt others to follow suit, and may even help encoura...
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