Funds Hub

Money managers under the microscope

Hedgies sit on the fence

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There has been much debate about whether London’s hedge fund community, angry at plans for a 50 percent tax rate on top earners and the EU’s draft directive proposing tough controls on the sector (not to mention the usual problems of traffic, high property prices and quality in life in London that usually get raised), will head to low-tax Switzerland.

rtr273vjOur analysis today argues that, while a trickle have already left, there are far more who have upped the rhetoric but are simply waiting to see who wins the next election.

Polls point to a Conservative victory, traditionally viewed as being good for business, but so far the Tories have refused to commit to cutting the tax, which will come in next April and affect those lucky few earning over 150,000 pounds.

Tory leader David Cameron faces a tricky task — an early pledge to cut the tax could draw accusations of favouring bankers when we are still recovering from the credit crisis.

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