According to a survey conducted by the Duff&Phelps agency released on Tuesday, Brexit has enabled New York to replace London at the top finance position in the world.
The annual Global Regulatory Outlook survey was conducted on 180 financial executives working in various domains, such as asset management, private equity, hedge funds, banking, and brokerage. The respondents were asked as to where, according to them, the top financial center of the world was situated. More than half of them answered New York, a response that saw a 10% increase from last year’s survey, whereas only 36% felt that London took the lead – a 17% fall in total response from 2018.
Talking about the survey, 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, globalization’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.”
The survey agency further added that other world cities like Dublin, Frankfurt, and Luxembourg have also performed better this year compared to the last. Britain’s exit from the European Union has already been delayed twice so far and the next deadline for the country has been set on October 31 this year. However, the British government still expects the UK finance business to be even stronger as a fallout of Brexit.
Growing uncertainty over the bilateral trade relations in the future is forcing financial institutions like banks, asset management companies, and insurance firms to commence operations in the bloc to help maintain relations with their customers.
Over 60% of the total respondents in the survey belonged to Britain and the US, and the others were primarily from Hong Kong, Ireland, Singapore, and Luxembourg.