France: Financial Transaction Tax (FTT) : Reminder on coming into effect on 1 August 2012
With reference to our Announcements L12006, dated 1 June 2012 and L12014, dated 3 July 20121, concerning the French law2 introducing a financial transaction tax (FTT) (the “FTT Law”), Clearstream Banking3 customers are reminded that the FTT Law will affect all transactions that have been traded and settled as from
1 August 20124
It is the responsibility of the customer to fulfil all applicable requirements that result from the introduction of the FTT Law. In particular, customers must ensure their compliance with any applicable obligation to collect the relevant transaction data requested by the FTT Law as of 1 August 2012 for impacted French securities as well as to proceed with the payment of the tax.
For details on the processing of the FTT by Euroclear France, please refer to the Blueprint for Financial Transaction Tax of Euroclear France5.
In order to comply with applicable requirements of the FTT Law, customers are strongly recommended to secure the advice and guidance of a professional tax advisor.
This Announcement is provided for information purposes only and does not aim to give any legal or tax advice. Clearstream Banking strongly recommends that customers assess whether and how their business is impacted by the FTT Law.
Clearstream Banking makes no guarantees, representations or warranties and accepts no responsibility or liability as to the veracity, accuracy or completeness of this document and under no circumstances will be liable for any loss or damage caused by reliance on any opinion, advice or statement made in this document.
Further information
The information herein provided is based on information currently available in the market and is subject to further update. The release of more information may impact the process herein described. We will provide further details as they become available.
For further information, customers may also contact Clearstream Banking Customer Service or their Relationship Officer.
1. All our FTT related Announcements published to date are: A12057, L12006, L12013, L12014, L12017, L12022, L12023.
2. Loi n°2012-354 du 14 mars 2012 de finances rectificative pour 2012, available at www.legifrance.gouv.fr/. The FTT Law is currently being amended. The draft amendment bill has been voted on but not yet published. Please also refer to our Announcement A12131/D12036.
3. Clearstream Banking refers collectively to Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in the Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500 (CBF) and Clearstream Banking, société anonyme, registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Register of Commerce and Companies under number B-9248 (CBL).
4. At the same time, an FTT on high-frequency trading transactions and on uncovered CDs in sovereign debt will be launched in France (aspects not covered in this Announcement).
5. Blueprint for Financial Transaction Tax (latest version 2.01 dated 24 July 2012), available at http://www.euroclear.com/.
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