Brexit helps New York take top finance spot from London: survey

LONDON: Fallout from Brexit has helped New York overtake London to become the world’s pre-eminent financial center, a survey of financial executives by Duff & Phelps showed on Tuesday.

The consultants said their annual Global Regulatory Outlook survey contacted 180 executives in asset management, private equity, hedge funds, banking and brokerage.

They were asked where they think the top financial center is located. More than 60% of responses were from Britain and the United States, with the rest mainly from Hong Kong, Ireland, Singapore and Luxembourg.

Just over half of respondents now see New York as the world’s top financial center, up 10% from 2018, while 36% see London as the leader, down 17% from last year.

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

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

British government ministers said last week that the UK financial sector would emerge stronger from Brexit.

Duff & Phelps said Dublin, Frankfurt and Luxembourg also fared better this year as the European Union’s financial industry searches for a new hub.

Britain’s departure from the EU has already been delayed twice, with the next deadline set for Oct. 31, and uncertainty over future bilateral trade relations has prompted banks, asset managers and insurers to set up operations in the bloc to maintain links with customers.