The state is motivating small retail investors to choose less investor-safe solutions and destroying our capital market

Peter Varga was a guest on the Trend podcast with Ronald Izip, where he discussed the topic of regulations and taxation of various investment instruments such as funds, securities, crypto and others.

Peter explained why the current regulation of investment structures encourages self-invested retail investors to invest in riskier investment assets (thereby exposing the population to unreasonable risks) by:

• provides a tax incentive to invest in riskier assets;
• contradicts Slovakia’s tax policy, which is based on the fact that the state supports long-term and safe savings (3rd pillar or long-term investment savings);
• prefers to invest through less safe investment structures and instruments;
• jeopardises Slovakia’s obligations to provide assistance to persons in material need, to which Slovakia subscribes in the Constitution of the Slovak Republic, by motivating non-professional clients (especially financial consumers) as investors;
• prefers less institutional and less predictable investment structures and instruments;
• favours the use of foreign investment infrastructures over Slovak ones, thus negatively affecting the development of the capital market in Slovakia; and
• In the case of real estate, it favours investing in foreign assets over capital support for local projects and businesses.

The analysis is based on a detailed regulatory and tax analysis prepared by Peter Varga for the Slovak Association of Asset Management Companies(more information here).

You can listen to the podcast here: https://www.trend.sk/financie/stat-preferuje-retailove-investovanie-cez-menej-bezpecne-investicne-nastroje

If you are more interested in the topic, book a consultation with Peter Varga here: