Major banks 'unlikely to leave London offices'

Clomplexity of moving overseas suggests major banks should keep their offices in London

Article posted: 04 Feb 2011

The debate over bonuses in the financial sector continues, but experts believe it is unlikely banks will leave their office space in London and move overseas as a result.

Speaking to the Financial Times, Nick Woolf of executive search firm Sainty Hird said he has yet to see evidence of major relocation plans, despite murmurs of discontent within the banking community.

"So far there hasn't been a huge demand from people saying 'get me out of the UK'," he told the newspaper.

Industry sources have suggested the government's attempts to clamp down on remuneration could render office space in the City of London less attractive than other leading financial centres, such as Hong Kong and Singapore.

However, Andrew Hanson, director of financial services recruitment at Robert Walters, pointed out that moving a headquarters is a highly complex operation.

"It is a massive step change to relocate a head office," he said.

Financial services minister Mark Hoban reiterated the government's concerns about bank bonuses earlier this week.

In comments reported by Reuters, he said banks should "show restraint" when awarding payouts.

Posted by Dan