Structural shifts
Germany's structured products market is set for a shake-up following new reforms that will eliminate a tax exemption for non-capital-guaranteed certificates. It could cause investors to shift towards shorter-dated, capital-guaranteed products. By Wietske Blees
A new regulation in Germany could have major implications for certificates and could lead to a shake-up of the country's structured products industry. The law, aimed at simplifying tax rules for investment products, will bring in a flat tax rate for all capital income from January 2009 and will mean non-capital-guaranteed certificates - the wrapper of choice for the structured products market in Germany - will lose their tax-exempt status.
But in a fresh amendment to the law, expected to be
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