For a while now, those promoting London as a financial centre have warned that any increase in the regulatory or tax burden on UK-based firms might prompt an exodus of top people to more accommodating jurisdictions. The threat has often been backed up by tales of Swiss cantons stalking UK-based private equity and hedge fund partners to persuade them how easy it would be to decamp to the Alps. Left-wing critics of the UK government’s friendliness towards the City of London have tended to discount such tales as scaremongering. But, whether or not the cantons’ fifth columnists are at large, on Thursday Swiss financial services companies will go public with a “Master Plan” to secure Switzerland’s position as a financial centre.
Having a plan — even one cleverly timed for the month before a Swiss general election — is not the same as having a plan implemented, let alone persuading financiers to abandon the accumulated advantages of London for a view of Lake Lucerne. Backers of the Swiss plan also include financial giants like UBS and Credit Suisse that have established deep roots in London themselves. But the outlines of the Swiss campaign will look familiar to supporters of the City: abolition of stamp duty, tax changes. At a time when British unions and hard-left politicians are again revving up the rhetoric for a regulatory and tax clampdown on buy-out firms and hedge funds, the Swiss plan is a timely reminder that London’s rivals are waiting to take advantage of any adverse adjustments that tip the delicate balance in their favour.