Q&A: What will be the impact of independence on Scotland’s finance industry?
Last week, Edinburgh law firm Tods Murray organised a London-based seminar on the implications of independence for Scotland’s financial services industry. You can listen to the full event here.
If you don’t want to listen to the whole thing, we’ve asked Hamish Patrick, financial services partner at Tods Murray some questions. This is what Hamish told us.
Q: Will independence be a good thing for the Scottish financial services industry? Or a bad thing?
"Scotland's financial services industry is currently strong and diversified and growing in some areas. The larger players are obviously not purely Scottish and various types of retail and business financial services are currently provided from outside Scotland to those living or operating in Scotland. The strength of the Scottish financial services industry following any move to independence may therefore be measured by the jobs and management functions located in Scotland following independence and the taxes paid in Scotland by financial businesses headquartered or otherwise based here.”
Q: Faced with independence, what are the prospects for jobs in Scotland’s financial services industry?
"The effects of independence on the Scottish financial services industry depend very much on the policies adopted by an independent Scottish government and the manner in which changes from current policies and in the business environment are handled. Given the historic financial services skills-base in Scotland, longer term prospects for growth in financial services business based in Scotland must be good, provided the regulatory and tax environment is not unfavourable and the basic financial structures are seen to be clear and robust. Financial businesses already located in Scotland may then see Scotland as a good place to grow and businesses headquartered elsewhere may see reason to base jobs and specific functions in Scotland. Equally clearly, many financial businesses are mobile and if the business environment is not seen to be favourable, stable and safe, jobs and functions currently located in Scotland could move elsewhere and financial businesses headquartered elsewhere may choose another location when moving or expanding jobs or other functions.
Q: What will be the key determinants of the long term health of Scotland’s financial services sector?
"Scotland's financial services industry is currently strong and diversified and growing in some areas. The larger players are obviously not purely Scottish and various types of retail and business financial services are currently provided from outside Scotland to those living or operating in Scotland. The strength of the Scottish financial services industry following any move to independence may therefore be measured by the jobs and management functions located in Scotland following independence and the taxes paid in Scotland by financial businesses headquartered or otherwise based here.”
