Tax increases could force StanChart out of UK
(18 July 2016 – United Kingdom) Standard Chartered’s (StanChart) chief executive has told the Financial Times that the bank would consider moving its headquarters out of the UK if the country’s vote to exit the EU prompts politicians to pummel the banking sector with extra taxes.
“There is so much fiscal pressure on the government; it could be tempted to take another swipe at the banks and that would cause us to take another look at the headquarters issue,” Bill Winters told the publications
He added that he was worried that big lenders would “continue to be treated as the piggy banks to be raided whenever you need money”.
StanCharts competitor, HSBC announced earlier this year that it would stay in the UK following protracted talks of shifting its headquarters to Hong Kong, while recently adding that the Brexit vote would not change that outcome.
Adding to the City’s uncertainty, has been talks of other financial institutions, including JPMorgan Chase, Morgan Stanley and HSBC, saying that they may transfer jobs out of London should barriers of trade increase between the UK and the EU.
Winters added that the said the Brexit vote could be a short-term boost for StanChart, which is listed and based in the UK, but does most of its business in Asia, the Middle East and Africa.
“Companies that operate in our markets are not going to say: ‘It is harder to do business with Europe, so we’re not going to do any business at all.’ Instead they are going to focus more on other markets,” he said.
“Net-net, I think this is a good thing for us.”
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