10 May 2011
Key decision makers at top firms confirm London’s unparalleled
reputation as the most global of all financial centres
A report released today by the City of London highlights the
complex interaction of factors that affect the location decisions
of global businesses and their highly-skilled employees.
The ‘Understanding Global Financial Networks’ report, produced
by Ipsos MORI, highlights how proximity to clients, quality of
business environment (including the stability of tax and regulatory
regimes) and availability of skilled talent locally are all central
to such decisions.
Based on interviews with 40 high-level financial services
professionals – both key decision makers and mobile, highly-skilled
employees - working for leading firms such as HSBC, Nomura, DVB
Group, Deutsche Bank, KPMG, Clifford Chance, and Lloyds across the
globe, this qualitative piece of research examines the various
factors that firms and individuals take into account when deciding
where they are going to be based.
It also presents an in-depth analysis of how the four leading
financial centres - London, New York, Hong Kong and Singapore - are
perceived amongst the international business community, looking at
their overall reputation and how this has been affected by recent
political and economic events.
Stuart Fraser, Policy Chairman at the City of London
Corporation, said:
"As a financial centre, London remains the envy of the world –
it is certainly the most global centre and, by quite some distance,
the one with the greatest international capital flows.
"I know from experience that other financial centres,
particularly those in the emerging markets of the Far East, are
desperate to replicate this template for success so that they too
can attract the top global firms and the top global talent. "But
what is it that makes a financial centre attractive?
"With its many natural competitive advantages, London has long
been seen as a welcoming business environment but the report
suggests that this reputation has come under threat in recent
times.
"‘Banker Bashing’, bonus backlashes and a perceived lack of
certainty over tax, regulation and immigration have undermined
London’s attractiveness to the international business
community.
"In an increasingly competitive global marketplace, where
capital and talent are highly mobile, it is vital that we pay heed
to the way in which location decisions are made so that firms
continue to choose to be based in London and continue to provide
huge economic benefits for the UK for many years to come.
"But we must also create an environment that will appeal to
individuals – a firm’s greatest asset is its workforce and if top
performing employees decide they do not want to live in London,
then businesses may decide to base themselves elsewhere."
Ends
Notes to editors
- Download a copy of the Understanding Global Financial Networks
report from
www.cityoflondon.gov.uk/researchpublications.
Before online publication available under embargo by
email.
- About the City of London: The City of London
Corporation supports and promotes the Square Mile as the world’s
leading international financial and business centre and provides
local government and police services for workers, residents and
visitors. It also provides valued services to London and the nation
as a whole including management of Guildhall Art Gallery, the
Barbican Centre, the Central Criminal Court at Old Bailey, 10,700
acres/4,240 hectares of open space (including West Ham Park, the
City Gardens, Hampstead Heath, Epping Forest), three wholesale food
markets and acts as London’s Port Health Authority.
- About Stuart Fraser: Stuart Fraser is Chairman
of the Policy and Resources Committee of the City of London
Corporation. View his biography.
Download a photo of Stuart Fraser.
Press contacts
James Abbott
Tel 020 7332 1754
Mob 07831 543188
Email
james.abbott@cityoflondon.gov.uk
Sanjay Odedra
Tel 020 7332 1835
Mob 07831 542 856
Email
sanjay.odedra@cityoflondon.gov.uk