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

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Foreword Michael Snyder Chairman, Policy and Resources Committee Corporation of London It has been almost two and half years since the Corporation of London published its landmark research report Sizing Up the City – London’s Ranking as a Financial Centre. That report attracted a significant amount of attention not only because it asked senior decision makers in the international financial services industry about the key components of competitive advantage, but also because it asked them how the world’s major financial centres ranked against these criteria. The City of London ranked very highly in the original study. However, given the rapid pace of change in the financial services industry since that report was published, we recently decided to commission a fresh exercise. This new report, produced by Z/Yen Limited, seeks both to measure how perceptions of the City’s competitive position have changed since 2003, and to expand the scope of the exercise to embrace a wider range of factors and a greater number of centres. I believe the key findings of this report are clear: London and New York have moved further ahead of Frankfurt and Paris as international financial centres. Indeed, those interviewed during the course of the research believe that there are only two genuinely global financial centres - London and New York. Although Paris and Frankfurt are extremely important regional financial centres, and a number of other cities have been very successful in individual sub-sectors of the industry, the preeminence of the City and Wall Street is if anything even more pronounced than before. As was the case with the 2003 report, today’s respondents believe that the availability of skilled personnel and the nature of the regulatory environment are the two most important competitive factors affecting international financial centres. Despite a host of pressures, particularly on the regulatory front, London has once again scored highly in both instances. There is, however, no room for complacency. It is clear that UK policy makers must continue to monitor the regulatory balance carefully and respond where necessary with proportionate action if London’s relative competitiveness is to be maintained. 4
Looking ahead, respondents were divided as to whether there was scope for the emergence of a third global financial services centre. They were, however, strongly of the view that if such a centre did arise it would be in China. The Corporation of London is acutely aware that China’s role as an economic power has grown dramatically, and a vast market is being created for financial products and services. We therefore plan to engage closely with the People’s Republic and to respond to these challenges and opportunities for the City being created. 5 Michael Snyder London November 2005
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The 2003 report predicted that “r
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There was a mixed feeling towards t
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Financial centres are where market
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In total, 18 countries were represe
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• Regulatory Environment • Gove
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Appendix C - Interviewees We interv
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Marano, Angelo, Beyond the London-F
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