HSBC shareholders query HQ’s London future

Michael Geoghegan, who stepped down on Friday as chief executive of HSBC, says the bank’s shareholders are increasingly concerned about the viability of locating the headquarters in London. His comments were seen as a parting shot across the bows of those who seek to over-regulate the City – or, in his words, “fail to appreciate the City of London’s uniqueness”.

Geoghegan said: “Every three years we review being headquartered here. Each time it comes back that the UK is the right place. Interestingly, shareholders are taking more of an interest and beginning to ask 'What is the cost to HSBC of the bank being located here?',” he said.
 
“It's the right thing for them to say. I think they will find when you look at security, transport, taxation, time zone, talent and so on, London will continue to be the right place but the only thing that would change that is if the uniqueness of London isn't preserved. It's an open City of London that will attract the best."

To drive the point hime, Geoghegan said: "I've no problem with discipline for remuneration but we have to be cognisant that London will be at a disadvantage if others don't follow our approach and I haven't seen any other financial centre following London or the European Central Bank.”

He concluded: "Capital will move to where the regulations are most accommodative to business.”

Read a full report at the Daily Telegraph. ·