London: According to research released by the City of London on Thursday, the UK capital has lost ground to the world's top financial hub, in part because of the nation's exit from the EU.
According to recent statistics, London and New York now share the top spot among the world's major financial centres. This is the first year,
according to benchmarking data compiled by the City of London's governing body, that the UK capital has not been the undisputed leader because other financial centres are expanding more quickly.
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Financial services executives are worried about London's competitiveness because of Brexit, which has led some businesses to relocate their headquarters to the EU. They claim that London risks losing its top ranking as a result.
"The UK continues to be one of the most accessible and open financial hubs, offering more access to global markets than the US, France, or Japan. However, Chris Hayward, the City of London Corporation's policy chairman, warned that our competitive advantage was in jeopardy.
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According to data, fewer foreign businesses are choosing London over New York for their initial public offerings, and "the number of international companies listed in London is falling."
Arm, a significant chip designer owned by the Irish building materials giant CRH and Japan's SoftBank, announced recently that it would leave the UK and look to list in the US.
The announcement, according to Julia Hoggett, CEO of the London Stock Exchange, "demonstrates the need for the UK to make rapid progress in its regulatory and market reform agenda, including addressing the amount of risk capital available to drive growth."
As a result, the British government has proposed a number of reforms to the UK listings market and has pushed for deregulation in the banking and insurance industries to spur new business.
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There are worries that the US is more appealing for businesses to expand because of a less strict business culture.
London's overall competitiveness score increased from 59 in 2022 to 60 according to the study. To tie London, New York raised its score by two points. Frankfurt scored 46, Paris scored 43, and Tokyo scored 35. Singapore came in third with a score of 51.