Ian Hamilton

This column is authored by Ian Hamilton, who is the founder of IDS Group. IDS provides fund administration services in Africa and Europe through Malta. He is also the founder of Scotstone Investments, a company that has fund structures and services for global emerging new managers.

While we have economic chaos with Grexits and Brexits, we at least have certainty of government in the UK but still the uncertainty of London continuing as a major world financial centre.

London, as a global financial hub is having trouble with its banking centre being threatened by the withdrawal of two global banks, HSBC and Stanchart, because of increased oversight and proposed increase in banking levies.

It is interesting that neither bank was affected by the banking melt down in 2008. However, HSBC is classic in its squealing because of being caught time and time ago over the past few years in every other banking scandal, money laundering, Libor rate fixing, tax evading foreign accounts and so on.

But what will it mean to move to other climates? HSBC moved its headquarters to London because it feared the Chinese Government post the handover of Hong Kong. Now it talks of going back to Hong Kong.

The question is, will its key UK staff want to move to Hong Kong? The enclave is not what it was many years ago. It is over- priced in almost every sense. Rentals are through the roof, staffing with expats difficult and expensive.

Would key staff move just for money? I think not. London may be expensive, but for a married couple with children, Hong Kong is a nightmare. Think apartments, not houses, think private schools full of expatriates and pricy. No more hors......................

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This article was published in Opalesque's New Managers a top-down monthly analysis, news and research publication on the global emerging manager space.