Financial Services and Asset Management

The financial services sector remains weak and is likely to continue underperforming in the short-term due to market uncertainty. Britain’s financial services sector is likely to see structurally weaker growth than before the financial crisis. The City of London may become less important as a global financial centre, in part reflecting the movement in global economic power from the West to the East, which means that international financial services will shift more of their operations to Eastern financial centres.

The financial crisis could have a long-lasting impact on calls for ever greater regulation, impacting the reputation of the sector and accelerating the movement of some activities overseas.

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