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Brexit fallout sees New York overtake London as top financial centre, according to survey

'Full-blown crisis' over EU exit means Britain is losing its top spot, report suggests

Phil Thomas
Tuesday 28 May 2019 14:22 BST
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London is losing its status as the world’s most important financial centre to New York because of the Brexit crisis, according to a global survey of executives.

The British capital fell 17 per cent on last year when bosses were asked to name the world's top financial centre, with New York rising 10 per cent.

For the research, consultants Duff & Phelps asked 180 senior figures in asset management, private equity, hedge funds, banking and brokerage.

Some 52 per cent said New York, up 10 per cent from last year, while 36 per cent said London, down 17 per cent from 2018. European centres including Dublin, Frankfurt and Luxembourg also saw higher rankings in this year’s Global Regulatory Outlook survey.

Looking ahead five years, only 21 per cent of respondents expected London to be the world’s financial centre, with 44 per cent predicting it would be New York. Some 12 per cent said Hong Kong, up from 3 per cent last year.

In a statement, Duff & Phelps said: “Last year, Brexit cast a shadow of uncertainty over the United Kingdom’s economy; it has now escalated to a full-blown crisis.

“Looking ahead, however, globalisation’s diffusion of influence begins to be apparent: 12 per cent of respondents expect Hong Kong to be the world’s preeminent financial centre five years from now.”

The survey questioned financial executives in countries including Britain, the United States, Hong Kong, Ireland, Singapore and Luxembourg.

Brexit has already been delayed from its expected date of 29 March, with a new deadline of 31 October. Continued uncertainty over future trading arrangements has prompted some banks, asset managers and insurers to trigger contingency plans.

Additional reporting by Reuters

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