EU Savings Tax Directive: the market's response

Drawing on the results of Datamonitor's Offshore Market Leaders Survey of 95 offshore financial services companies about the impact of the impending EU Savings Tax Directive, this report analyzes what companies are doing to inform customers and to develop products and services to mitigate the Directive's effects.

Price EUR 1,063.80 Publisher Datamonitor Publication date 06 October 2004 Available from Dispatched and sold by marketresearch.

Scope

• Analyzes the definition of the EU Savings Tax Directive to understand the extent of its coverage
• Presents the results of Datamonitor's Offshore Market Leaders Survey 2004 to provide insight into how providers view the Directive
• Summarizes the ways in which financial services companies can mitigate its effects
• Analyzes the extent to which wealth managers have pursued various mitigation strategies and suggests how others should react

Highlights
The opening paragraph of the European Savings Tax Directive makes reference to a number of key terms. Taken in turn, these are 'interest payments', 'individuals' and 'another member state'. Upon closer inspection, each offers wealth managers scope to mitigate the Directive's effects on their clients.

The Directive is clearly seen as a negative event for jurisdictions within its remit. Results from Datamonitor's Offshore Market Leaders Survey 2004 show the Directive to be considered the single biggest threat to offshore revenues over the next two years. Over half of the industry harbors serious concerns that it will drive assets onshore.

The market has responded to the Directive along three broad themes. These are: by augmenting their existing product portfolio; by developing their ability to offer trust and company structures; and by putting in place an ability to manage assets from other jurisdictions.

Reasons to Purchase

• Aids understanding by providing a comprehensive point of reference on what the Directive is and what it aims to achieve
• Offers competitor intelligence on the different ways in which wealth managers are reacting to the Directive
• Supports strategic planning by outlining the ways in which the Directive's effects may be mitigated and how different players should react