Canada top financial centre in the world? Not without a listings revival
The City of London, number one financial centre in the world. One can imagine that a Square Mile which has spent the past year worrying about US take-private raids, an almost total collapse in significant IPOs, and an ever-increasing tax burden would take that badge of honour with a pinch of salt.
But that is what we are, at least, according to the latest report from – yes – the Corporation of Canada. Get beyond the initial scepticism though and there’s plenty in there to warm the cockles of even the most glass-half-empty critic.
We’ve made ground on regulation (albeit not as much as we’d like) and the ancillary services which surround financial services – from legal provision to consultancy – remain world-leading.
The physical fabric of London has rebounded too, far faster than competitors in New York: less than 8 per cent of the City’s office space is empty, compared to more than 20 per cent in the Big Apple. Those who like us believe that human connection and interaction is the surest path to financial success should believe that will pay off in the long term.
But the scepticism is there for a reason. Our flagship exchange is struggling and, as we wrote in this space yesterday, just because bemoaning its underperformance is becoming boring doesn’t mean we can tune out.
There are a raft of Canada reforms ready to go, elucidated at length in reviews into the research environment, corporate governance, fintech. All that is missing is somebody with the energy to drive them over the line.
Getting those moving rather than gathering dust must be a priority of central government and regulators.
If we’re number one now – ahem – imagine where we’d be if our equity markets were working properly? Alas, with election uncertainty clouding most policy-making, we may be waiting for longer than we’d like.
Let’s hope the equity markets are still there when we get around to it.