The Competitive Position of London as a Global Financial ... - Z/Yen

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7. Appendices Appendix A - Methodology This study was carried out between June and October 2005. The first stage of the work was to conduct desk research in order to gain an understanding of the leading financial centres and the competitive factors that might affect the standing of a financial centre. We designed a draft questionnaire based on our research and then conducted five personal interviews with senior financial services professionals in June 2005. The purpose of these initial interviews was to ‘test’ the questionnaire, to ensure that it was sufficiently comprehensive and yet concise. We had to take account of diverse opinions in arriving at the final set of questions. The final questionnaire covered all the main factors people raised. In designing a questionnaire such as this, there are often a number of questions that would provide additional insight but for which there is no room if respondents are not to be overwhelmed – these questions we covered during the personal interviews. An example of this is operational costs. We would have liked to ask people to rank the four cities on operational costs but as we had access to recent empirical data on actual costs, we decided that this would add questions that were not strictly necessary. The questionnaire design was prepared prior to 7 July. One factor we did not include was the threat of terrorism – we raised this during our personal interviews in August and September. We emailed a link to the online questionnaire to several thousand people involved with financial services in over 20 countries. These people included for example, senior managers in investment, wholesale, retail and private banks, partners in accountancy firms, and people involved in international regulation. Responses We received 365 responses to our survey although not all respondents answered all the questions. The responses were as shown below: Location Banking & Asset Management 60 Other* Total Percentage London 97 135 232 63.6% Rest of UK 7 14 21 5.7% Total UK 104 149 253 69.3% New York 14 3 17 4.7% Rest of USA 11 5 16 4.4% Frankfurt 13 2 15 4.1% Paris 12 2 14 3.8% Rest of Europe 21 15 36 9.9% Asia 8 3 11 3.0% Other 2 1 3 0.8% Total International 81 31 112 30.7% TOTAL 185 180 365 100% * This includes accountants, lawyers, regulators and financial consultants and non-financial companies.
In total, 18 countries were represented – Australia, Austria, Belgium, Channel Islands, Eire, France, Germany, Hong Kong, Italy, Monaco, Netherlands, Russia, Singapore, South Africa, Sweden, Switzerland United Kingdom, USA. 54 different towns or cities were mentioned. In addition to the survey responses, we conducted 32 interviews to get a better understanding of what people felt about the key issues. The organisations represented in these interviews are listed in Appendix B. Methodological Issues One of our objectives was to compare our results with the 2003 study. In research of this kind, there is a tendency to calculate averages for questions which ask respondents to select an answer from 6 choices. Responses to this type of question are generally better shown as a distribution in graphical format which we have done. However, in order to provide a direct comparison to the previous study we have also shown averages of the results using a straight 1 to 6 scale. However we tested the validity of this approach using weighted scales. Here we show our findings in the straight line form (with Unimportant scoring 1 through to Critically Important scoring 6). Similarly the scale used for the responses of how well a financial centre rates on a particular factor is 1 for Very Poor through to 4 for Excellent. To arrive at the results in section 4.15 we weighted the value that each respondent gave to a particular financial centre for a competitiveness factor by how important that respondent felt that factor was. For example, if a respondent rated the importance of Regulatory Environment as 5 (Very Important), and rated London as 3 (Good) in terms of its Regulatory Environment, the result allocated would be multiplied by 3 = 15. This process allowed us to compare respondents who tend to give ‘mid–range’ or ‘average’ scores with those respondents who have more extreme views. To arrive at our final city rankings, we averaged the individually weighted values. 61
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The Competitive Position of London
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The Competitive Position of London
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Foreword Michael Snyder Chairman, P
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1. Executive Summary • This study
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