For Global Markets clients only: Italian Financial Transaction Tax application clarification

This notice, which takes effect on and from 12 December 2016, clarifies the process for applying the Italian Financial Transaction Tax (FTT) to relevant Global Markets accounts. Since its introduction in 2013, the FTT has applied to investor-acquired equity securities, including ordinary securities, American Depository Receipts (ADRs) and Global Depository Receipts (GDRs).

Calculating FTT

The applicable tax rate will be either:

  • 10 basis points (BPS) for regulated Italian trades – those executed on a regulated exchange or through a counterparty executing acquisition orders on a regulated exchange for an investment service provider; or
  • 20 BPS for unregulated Italian trades – those not executed on a regulated exchange or through a counterparty selling securities from its firms’ inventories.

To help clarify the difference between regulated and unregulated trades:

  • Regulated: If a trade is executed on a regulated exchange (such as the New York Stock Exchange), Pershing LLC will apply 10 BPS to calculate the FTT for those clients using the FTT service.
  • Unregulated: If a trade is Over-the-Counter (OTC) and not executed on a regulated exchange, Pershing LLC will apply 20 BPS to calculate the FTT.

If you have any questions, please contact the Global Markets trading desk on 1300 757 319 (open 24 hours a day on US trading days).

This notice is issued by Pershing LLC.

Global Markets trading is provided by Pershing LLC, ARBN: 108 110 149, AFSL no 271837, member FINRA, NYSE, SIPC through Australian Investment Exchange Limited (“The Participant”) ABN 71 076 515 930 AFSL 241400, a Participant of the ASX Group. Share trading with Westpac Online Investing is a service provided through Westpac Securities Limited ABN 39 087 924 221, AFSL 233723 by the Participant.

Published: 5 December 2016

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