London to lose crown as financial services hub

Less than one-fifth of private fund managers think London will still be one of the world’s most important financial services centers in 2022, according to a survey by global financial advisory firm Duff & Phelps.

Respondents named it the second most important global financial center, after New York. Thirty-six percent opted for the British capital compared with 58 percent for the US city. But when it came to ranking where cities would be in five years’ time, only 16 percent chose London.

The survey of 181 professionals also found more than half of managers felt financial services regulation has had little effect or weakened market stability. Similarly, 51 percent said it had done little to improve investor confidence and 7 percent say it has eroded it.

“Just one in 10 said regulatory changes over recent years have adequately created safeguards to prevent a future crash,” the report said.

Almost nine out of 10 respondents said regulators are increasing costs. Compliance spending at a typical firm is expected to more than double in the next five years, from around 4 percent of total revenue to around 10 percent.

“Financial services professionals remain far from convinced that regulation – despite the vast costs imposed on the industry – has made markets safer,” the report said.