Most senior employees in London’s financial district are willing to relocate amid regulatory pressure to cut bonuses, according to a recruitment firm survey.
Astbury Marsden said 90 percent of City finance employees questioned were willing to move from London to New York and Singapore compared with 77 percent a year ago. The firm surveyed 1,122 people in June.
“Competing financial centers like New York, Singapore and Hong Kong are free from restrictions on bonuses, giving them an advantage,” Adam Jackson, associate director at Astbury Marsden, said in a statement. “Traditionally, London has been the location with the most pull for a lot of the best and brightest in the sector, but sharp curbs on bonuses already seem to be prompting more of the City’s top-level workers to consider London’s big rivals.”
The European Banking Authority said last month it may restrict role-based payouts for senior bankers as it seeks to crack down on potential loopholes in rules curbing incentives for risky behavior. The EBA has “concerns that these practices do not conform to the requirements” capping bonuses at no more than twice salary, the agency, set up in 2011 to harmonize banking regulation across the 28-nation European Union, said in a report then.