Weds, 1 Feb 2012

Brighter times ahead for City?

Banking and City recruiters say London Mayor Boris Johnson’s call for French banks to bring their jobs to London could actually be a more realistic proposal than it might seem on the surface.

However, recruiters have also added a note of caution on the Mayor’s ambitious plans.

Johnson yesterday sent out the message to French banks that are set to suffer with the introduction of a financial transaction tax: “Bienvenue à Londres. This is the global capital of finance. It’s on your doorstep and if your own president does not want the jobs, the opportunities and the economic growth that you generate, we do.”

Chief operating officer of City recruiter Astbury Marsden, Mark Cameron, tells Recruiter: “I would imagine they would be very welcome… additional talent is always going to be welcome.”

Bank of England

Bank of England

He continues: “It would make sense that the banks would want to move to a cheaper tax jurisdiction,” although he acknowledges that depending on how the tax operates, it “may not be that straightforward”.

When asked by Recruiter how easy the transfer of such jobs and talent would be, Christian Sulger-Buel, founder and managing director of wealth management executive search firm Sulger Buel & Company, replies simply “it’s very easy”.

“You don’t need a work permit,” Sulger-Buel says, adding that is also relatively simple from a regulation point of view.

Both recruiters note that a large number of French banks already have London bases, with Cameron saying “it would not be very difficult for them to up sticks”.

However, Sulger-Buel also adds that the creation of a tax on financial transactions in France is “clearly a political move” given that this is a presidential election year, adding: “I don’t think it’s going to create a major move.”