Aberdeen Asset Management is considering abandoning the UK as its headquarters for tax purposes as speculation mounts that a wave of British fund managers could head for the exit in frustration at Treasury tax changes, The Times reports.
Aberdeen has been based in the Granite City since 1987, when it was formed out of a $50m investment trust in a management buyout led by Martin Gilbert, the chief executive.
Losing the company, which yesterday boosted its funds under management to £114bn through the acquisition of a property business, would be a big blow to the Treasury.
The list of companies that are threatening to leave the UK because of its unfavourable tax levies has increased almost by the day in recent weeks.
THE CHAIRMAN AND chief executive of the Financial Services Authority both criticised the Government yesterday for being slow in granting the City watchdog new powers to tackle market abuse, according to The Telegraph.
Alistair Darling, the Chancellor, promised in March that the FSA would get greater powers to combat market abuse. However, Hector Sants, the FSA's chief executive, told a parliamentary committee hearing that the regulator was disappointed that no timetable has yet been set.
The FSA's chairman, Sir Callum McCarthy, also told the Treasury Select Committee that the watchdog remains "in the hands of the Government" to get new legal powers. "This has not yet happened," he said.
The FSA said that it is determined to crack down on market abuse. It added that it plans to bring more criminal, rather than civil, cases of insider dealing as a deterrent to City traders.
CITI CHAIRMAN SIR Win Bischoff has joined a growing chorus of Wall Street executives in believing that the worst of the crisis that has gripped financial markets since last summer is over.
Speaking to the Daily Telegraph at a graduation event yesterday for the Career Academy programme at Central Hall in Westminster, Sir Win said of the credit crisis: "I think nevertheless 2008 is not going to be easy.
"But I think there are sufficient numbers of people working very hard to get (the financial system) out of this and I think we will be able to do so."
Citi, the world's biggest bank, has raised more than $37bn during the past five months as it repairs damage inflicted by the sub-prime crisis.
Sir Win also defended the world's major banks against criticism from billionaire investor Warren Buffett that they are growing too big to manage effectively.IFAonline
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