This comes as New York as overtaken London as ‘the leading financial centre’, CI Managing Director of Duff and Phelps, Malin Nilsson, said – a finding they made in their Global Regulatory Outlook report.
New York has taken back the title according to the seventh annual GRO report, which surveys senior professionals in financial institutions around the world. It found that only 36% currently see London as the foremost global financial hub, a 17% decrease from last year. New York is now seen as the world’s financial centre by 52% of respondents, a 10% increase from 2018, and Hong Kong was also chosen as third most important financial centre by more respondents than last year.
Ms Nilsson said: “Brexit has cast a shadow of uncertainty over the UK’s world-class financial sector and its ability to dominate other major financial hubs in the coming years. Looking ahead, we see the combined effects of Brexit and the emergence of Asia with respondents expecting Hong Kong to play a bigger role as a leading global financial centre. Financial centres such as Luxembourg and Dublin were also named as potential financial capitals of the future by a smaller number of respondents.
“I see it is certainly the case in the Channel Islands that while firms have become more diligent and sophisticated in their compliance and risk management systems, financial crime continues in a volatile global business environment and there is a growing sense of regulatory fatigue that cannot be overlooked.
“Excellence in compliance begins with a mindset that extends over every aspect of the business, maintaining that momentum of best practice at all levels. Without robust compliance the sector will be vulnerable to risks that are only just emerging.”
The survey also looked at how firms are coping with regulatory compliance challenges. Some of the most pressing issues facing the global financial community this year continue to involve anti-money laundering (AML).
Pictured top: Malin Nilsson.
