1. IMAGINE YOUR BUSINESS IN
LONDON
WHY LONDON FOR FINANCIAL SERVICES

2. WHY LONDON FOR
FINANCIAL SERVICES
 London is Europe’s largest investment banking
centre
 The foreign exchange market in the UK is the
largest in the world with 40% of global turnover
(more than Tokyo and New York combined) at
$2,191 bn a day
 The London Stock Exchange is the world‟s
leading international exchange with over 600
international listings. In 2011 it saw 76 IPOs which
raised £12.9 billion
 The UK Private Equity & Venture Capital sector
manages assets of £140bn, 30% of European
private equity was invested in the UK
 World N1 in OTC interest rate derivatives, with 46%
of the global share

3. WHY LONDON FOR
FINANCIAL SERVICES
 19% of the global foreign equity market traded in
London
 70% of global Eurobond turnover traded in
London
 120.3 million metal contracts a year traded in
London, with average daily turnover of $46bn
 1.293 billion contracts a year traded on London's
International Financial Futures Exchange
 The UK is the pioneer of modern public private
partnerships (PPP). £53bn has been invested in
developing nearly 700 public sector infrastructure
projects across the UK, including 140 hospitals

4. WHY LONDON FOR
FINANCIAL SERVICES
 London as an innovative pioneer in finance
with adoption of new products and promoting
financial inclusion: Islamic finance, RMB
platform
 London is next in line to become a Renminbi
trading centre, and is already a platform for
RMB transactions
 First European platform for Islamic finance
with £21bn assets reported at UK level, and
growing

6. 2012 GLOBAL FINANCIAL
CENTRE INDEX
GFCI 2012 provisional rank
GFCI 2011 ranks and ratings and rating
Global
Rank Rating Rank Rating Global Financial
Financial Changes Rank mid Rating mid
2011 2011 2010 2010 Centre
Centre 2012 2012
Half year results
London 1 781 1 774 +7
London 1 783
New York 2 772 2 773 -1
New York 2 771
Hong Kong 3 754 3 770 -16
Hong Kong 3 752
Singapore 4 729 4 735 -6
Singapore 4 729
Tokyo 5 693 6 695 -2
Tokyo 5 692
Zurich 6 689 8 686 +3 Zurich 6 690
Chicago 7 688 7 692 -4 Chicago 7 689
Shanghai 8 687 5 724 -37 Seoul 8 688
Seoul 9 686 11 679 +7 Toronto 9 686
Toronto 10 685 10 680 +5 Boston 10 685
6

7. A STRONG & ESTABLISHED
ECO-SYSTEM

8. FINANCIAL SERVICES
CONTRIBUTES 9% OF
THE UK GDP
AND 12% OF UK TAX
RECEIPTS

9. LONDON FINANCIAL
SERVICES
CONTRIBUTES TO 48%
OF TOTAL UK FINANCIAL
SERVICES OUTPUT

10. LONDON FINANCIAL
SERVICES EMPLOYS 350,000
PEOPLE
50,000 IN FOREIGN-OWNED
FIRMS

11. A UNIQUE ENVIRONMENT

12. LONDON IS THE PLACE
TO REACH DECISION
MAKERS
70% OF FORTUNE 500 COMPANIES
HAVE A HEADQUARTERS IN LONDON

13. A UNIQUE ENVIRONMENT
 Decrease in personal tax: 50p tax rate on the
highest earners (£150,000+) decreased to 45p
from April 2013
 Lower corporation tax: 22% by 2014 with a
commitment to stability. It is 18% lower than the
US, 16% lower than Japan, 12% below France
and 8% below Germany
 London offers a wide array of office spaces at
competitive prices
 London is a resilient city benefiting from the
multiculturalism and diversity of talents your
company will thrive in London thanks to
innovative and entrepreneurial spirit: ability to
find & develop new opportunities during the crisis
 London is a city offering high quality of living with
access to International Baccalaureate schools for
families looking to relocate

14. TALENT & EXPERTISE
 London is home to 350,000 employees in the
financial sector in London
 Range of institutions in banking insurance,
accountancy (ACC; ICAEW; CIMA; ATT),
insurance, and law (Law Society)
 London is a centre of academic excellence: its
network of higher education institutions, gives
businesses access to a constant stream of
exceptionally well-qualified graduates
 Domestic students & graduates in 2011/2012:
 Seven top universities
 + 60,000 students in business &
administrative studies
 + 25,000 graduates
 With 233 languages spoken, London offers a
worldwide cultural business reach
14

15. FINANCIAL SERVICES SUB
SECTORS

16. BANKING

17. BANKING
 The GFCI 2011 index ranked London the
second international centre for banking in
the world, and the first for government and
regulatory environment
 With 251 foreign banks, London has more
than in any other city
 The 3,500 London-based institutions
employ over 141,000 professionals, 40,000
of whom have a foreign passport
 Around 50% of all European investment
banking happens in London
17

18. LONDON HAS MORE
FOREIGN BANKS THAN
ANY OTHER CITY

19. INSURANCE & REINSURANCE

20. INSURANCE & REINSURANCE
 The GFCI 2011 index ranked London the
third international centre for insurance in the
world, and the first for government and
regulatory environment, and professional
services
 The UK insurance industry accounts for 7%
of total global premium income
 The UK insurance market is the largest in
Europe and the third largest in the world.
 London is the world leader in internationally
traded insurance and reinsurance, with all
20 of the world’s largest insurers and
reinsurers operating in the city
 200 ship brokerage firms accounting for 50%
of tanker chartering, 40% of dry bulk
chartering and 50% of second hand tonnage
20

21. INSURANCE & REINSURANCE
 Gross premiums on the London Market were conservatively estimated
at £36.9 billion in 2010, up 2% on the previous year
 The UK market consists of insurance companies, the Lloyd’s market,
intermediaries and various specialist support professions and services
 Lloyds accounts for two thirds of premium income for marine, aviation,
and transport business
 London is a key centre for international insurance and reinsurance,
particularly for marine and aviation business and reinsurance, with
21% of global marine insurance premiums (making it the first platform
in the world)
 Leading centre in legal services with over 40 firms, the English law
being the most applied to settle disputes
21

22. WEALTH & ASSET
MANAGEMENT

23. WEALTH & ASSET MANAGEMENT
 The GFCI 2011 index ranked London the first international centre for
wealth management in the world, and the first for government and
regulatory environment, and professional services
 Investment management:
• £4.1 trillion in funds under management in the UK, and 598 foreign
companies are listed on the LSE, and 2.8 tr of international bonds are
traded in the UK
• Since the launch of retail bond market in 2010, it is now possible for
individuals investors to get direct access to the market
 Hedge funds:
• London is the second largest centre for hedge fund management with
a 18% global share.
• The UK also leads on services such as administration, prime
brokerage, custody and auditing
• About 800 fund are located in the UK in 2011 managing 85% of EU
based assets, the majority in London
23

24. LONDON RANKED 1st
INTERNATIONAL CENTRE
FOR WEALTH
MANAGEMENT IN THE
WORLD

25. WEALTH & ASSET MANAGEMENT
 Carbon market trading:
• UK is lead investor in the Clean Development Mechanism, accounting for 26% of
all purchased projects
• European Climate Exchange: based in London and instrumental in the trading of
EU ETS futures and options contract
• UK as a leading centre for energy brokers in carbon market with major verification
agencies based in the UK
• London as centre for provision of equity finance to the renewable market: 115
CleanTech companies having raised £10 billion in new equity finance
 Private equity:
• London is the biggest centre after the US with 12 of global investment and 9% of
funds raised
• London is the largest EU centre for management and investments of private equity
funds
 Derivative exchanges:
- NYSE / Euronext Liffe - London Metal Exchange - ICE Futures Europe
- International commodity organisations (coffee, cocoa, grain & feed, sugar)
25

26. DERIVATIVES:
THE UK IS A LEADING
CENTRE WITH
46% SHARE OF
GLOBAL TRADING
IN 2010 (US: 24%)

27. SOVEREIGN WEALTH FUNDS

28. SOVEREIGN WEALTH FUNDS
 Funds under management grew by 9% in 2011 to  Non-commodity funds are increasing their share in
$4.8 tr, and projected to increase to $5.2 tr end the total under management, a trend that is likely to
2012 grow over the years. It is now accounting for $2.1 tr
 London is an important clearing centre and a under management
location where funds are managed from: Kuwait  SWF remains comparatively small with under 5% of
Investment Authority; Brunei Investment Agency; all global assets under management
Abu Dhabi Investment Authority; Tamesek  Other sovereign investment vehicles include
 New funds that have yet to set up in London include pension funds, accounting for $7.2 tr in 2011
the Nigerian Sovereign Investment Authority; the
Papua New Guinea Sovereign Wealth Fund, the
Italian Strategic Fund, and the Mongolia’s Fiscal
Stability Fund
Sovereign wealth
funds worldwide
Source: SWF Institute, 2010 28

29. ISLAMIC FINANCE

30. ISLAMIC FINANCE
 London is Europe’s largest market for  Issuance of Shariah compliant
Shariah-compliant financial products wholesale financial instruments
and services (corporate sukuk)
 To date, over £21 billion has been  Creation of the UK Islamic Finance
raised through 49 issues of bonds Secretariat (UKIFS) bringing
(corporate sukuks) on the LSE together government and industry
($1,086bn at global level). $19 bn of leaders to promote the UK as a
reported assets in the UK – leader in global gateway for Islamic finance;
Europe became integrated into TheCityUK.
 22 banks offering Islamic finance It has over 2,000 members
products, 5 sharia compliant (individuals and organisations)
 Entire range of support services for  No double taxation on properties
the city of London with legal support (stamp duties when mortgages are
of 25 firms repaid)
 Government support of financial  Qualifications in Islamic finance
inclusion: friendly regulation and tax offered by professional institutes and
environments: first member of the EU universities
to authorise Islamic banking
30

31. RMB FINANCE

32. LONDON AS A „RMB‟ FINANCIAL
CENTRE
 The offshore RMB market has grown in the last few years and will
keep doing so as the Chinese government relaxed exchange
controls, and made it clear it will do more
 London accounts for ¥109 billion of RMB deposits and 26% of the
daily global offshore RMB spot FX trading
 London is the western hub for international RMB business: offering
corporate and private banking RMB products and services using the
Hong Kong infrastructure for clearing
• Strong institutional investor base and growth opportunity in private
banking supported by London strength in wealth management
• Private banking: ¥4.4 bn transactions in 2011
• Corporate banking: ¥112 bn transactions in 2011
• Trade services: 16.4 bn transactions in 2011
32

33. LONDON ACCOUNTS FOR
¥109 BILLION OF RMB
DEPOSITS AND 26% OF
THE DAILY GLOBAL
OFFSHORE RMB

34. LONDON: „RMB‟ FINANCIAL CENTRE
 As of April 2012, Europe was the biggest
contributor with 47% of RMB payments, beside
China and Hong Kong, using the RMB for 6.7%
of all its payments with China and Hong Kong
 Its share of global currency trading is more than
twice that of the US and of the rest of the EU,
making it a natural choice as the second
international RMB centre
 Hong Kong has extended the operating hours of
its RMB Real Time Gross Settlement System to
4:30pm London time to give financial institutions
in the UK a larger window for settling offshore
RMB payments
 London as European platform with one single
legal framework, thus reducing complexity and
cost of doing business in China
34

35. PROFESSIONAL SERVICES

36. PROFESSIONAL SERVICES
 The financial services sector is supported by a strong
professional services sector
 Management consultancy:
• 127,000 employees and over 26,000 firms
 Legal services:
• 97,000 employees in 11,500 firms (200 foreign
firms)
• London hosts leading law firms, experts in
international deals
• 1,200 members of the commercial bars
association: expertise in international commerce
law, dispute resolution and mediation
• Opening of the Rolls building with 31 courtrooms
and 55 conference rooms
 Accounting services:
• 82,000 employees and over 8,000 firms
36

37. “WHILE TIMES ARE CHALLENGING, LONDON IS
VERY RESILIENT.
INNOVATION IS THE KEY FOR SUCCESS, AND
THE RESULTS SPEAK FOR THEMSELVES:
OUR TURNOVER SINCE SETTING UP IN LONDON
HAS EXCEEDED PREDICTIONS.
MAPFRE, SPAIN ”

38. HOW LONDON & PARTNERS
CAN HELP YOUR BUSINESS
SUCCEED

39. THE EXPERTS ON DOING BUSINESS IN LONDON
HOW WE CAN HELP YOU SET UP
BUSINESS
FIND THE
PROPERTY
FIND THE
BUSINESS FIND THE EXPAND YOUR YOUR
&PROPERTY
LOCATION
CASE RIGHT PEOPLE NETWORK LONDON
& LOCATION
- Sector Intelligence - Specialist Recruitment - Office Specialists - Professional Service - Culture & Social Life
- Legal Requirements - Funding & Training - Market, Clients & -- Events - Visas & Work Permits
- Corporate/Tax Structure - Salary Benchmarking Transport -- Government Contacts - Schools & Colleges
- Cost-effective Set-up - Employment Practice - Labour Pool -- Policy-makers
- Demographic Mapping
WWW.LONDONANDPARTNERS.COM/IMAGINEYOURBUSINESS
BUSINESS@LONDONANDPARTNERS.COM
@L_PBUSINESS JOIN US ON LINKEDIN: „LONDON & PARTNERS FDI GROUP‟

40. IMAGINE YOUR BUSINESS IN
LONDON