1. © Z/Yen Group 2010 © Z/Yen Group 2011 Z/Yen Group Limited Risk/Reward Managers 90 Basinghall Street London EC2V 5AY United Kingdom tel: +44 (20) 7562-9562 5 October 2011 Royal College of Physicians, Edinburgh Professor Michael Mainelli michael_mainelli@zyen.com The Future of Global Financial Centres

2. © Z/Yen Group 2010 © Z/Yen Group 2011 Highland Laddie

3. © Z/Yen Group 2010 © Z/Yen Group 2011 Z/Yen Overview ♦Special – City of London’s leading commercial think- tank ♦Services – projects, coaching/training, expertise on demand, research ♦Sectors – technology, finance, voluntary, professional services, outsourcing  British Computer Society IT Director of the Year 2004 for PropheZy and VizZy  DTI Smart Award 2003 for PropheZy  Sunday Times Book of the Week, Clean Business Cuisine  £1.9M Foresight Challenge Award for Financial £aboratory visualising financial risk 1997

4. © Z/Yen Group 2010 © Z/Yen Group 2011 What We Already Know Areas of Competitiveness: ♦People ♦Business Environment ♦Market Access ♦Infrastructure ♦General Competitiveness

5. © Z/Yen Group 2010 © Z/Yen Group 2011 A Global Phenomenon

6. © Z/Yen Group 2010 © Z/Yen Group 2011 ةيملاعلا ةيلاملا زكارملا رشؤم Índice de Centros Financieros Globales Indice dei Centri Financieri Globali Indice du Centres Financiers Globaux 世界的な金融センターインデックス Σφαιρικός οικονομικός κεντρικός δείκτης Глобальный индекс финансовых центров Wskaźnik Globalnych Finansowych Centrów Индекс на Световните Финансови Центрове Goelydh Nírnaeth Arnoediad Blebithar Globaler Finanzzentrenindex 全球金融中心指数 全 (quán) 球 (qiú) 金 (jīn) 融 (róng) 中 (zhōng) 心 (xīn) 指 (zhǐ) 数 (shù) A Global Phenomenon

7. © Z/Yen Group 2010 © Z/Yen Group 2011 GFCI to Date EditionDate PublishedRespondentsAssessments GFCI 1March 20074913,992 GFCI 2September 200782511,685 GFCI 3March 20081,23618,878 GFCI 4September 20081,40624,014 GFCI 5March 20091,45526,629 GFCI 6September 20091,80534,497 GFCI 7March 20101,69032,170 GFCI 8September 20101,87633,023 GFCI 9March 20111,97033,751 1,887 Respondents 28,604 Assessments

8. © Z/Yen Group 2010 © Z/Yen Group 2011 The GFCI Process GFCI 10 uses 28,604 assessments from 1,887 respondents GFCI 10 uses 79 Instrumental Factors

9. © Z/Yen Group 2010 © Z/Yen Group 2011 The GFCI World

10. © Z/Yen Group 2010 © Z/Yen Group 2011 Top Ten GFCI 10 Centres

11. © Z/Yen Group 2010 © Z/Yen Group 2011 Profile of Financial Centres

12. © Z/Yen Group 2010 © Z/Yen Group 2011 Profile of Selected Centres

13. © Z/Yen Group 2010 © Z/Yen Group 2011 ♦No significant difference between London, New York and Hong Kong Headline Findings London / New York Trend Line Hong Kong / Singapore Trend Line

14. © Z/Yen Group 2010 © Z/Yen Group 2011 ♦Europe:  Capital Cities at the heart of the Eurozone crisis are hit:  Dublin  Madrid  Milan  Athens  Northern and eastern European centres fluorish:  Copenhagen  Oslo  Helsinki  Tallin Headline Findings

15. © Z/Yen Group 2010 © Z/Yen Group 2011 ♦Middle East Centres Headline Findings

16. © Z/Yen Group 2010 © Z/Yen Group 2011 ♦Offshore centres Headline Findings

17. © Z/Yen Group 2010 © Z/Yen Group 2011 Assessments by Region – London

18. © Z/Yen Group 2010 © Z/Yen Group 2011 Stability

19. © Z/Yen Group 2010 © Z/Yen Group 2011 Areas of Competitiveness Overall Business Environment

20. © Z/Yen Group 2010 © Z/Yen Group 2011 Areas of Competitiveness

21. © Z/Yen Group 2010 © Z/Yen Group 2011 Signals of Commitment

22. © Z/Yen Group 2010 © Z/Yen Group 2011 Industry Sectors

23. © Z/Yen Group 2010 © Z/Yen Group 2011 Financial Clusters ♦Paradoxes in a digital world ♦The internal battlefield – liquidity and the human factor – skills and interaction ♦The external battlefield – tax and regulation

24. © Z/Yen Group 2010 © Z/Yen Group 2011 Keltic Kittens

25. © Z/Yen Group 2010 © Z/Yen Group 2011 Scotland - Whither or Wither? ♦Structure – problematic, UK competitiveness  Scotland needs vision, narrative & insight ♦People & business environment:  more competition and transparency, not less  tax (lobbying), fewer changes more stability  visas – working, visiting, student ♦Information & interaction  buzz - icons: conferences, fairs, festivals... thought leadership ♦Networking & connectivity  offshore strategies, new market connections  marketing to North America, Asia and Europe

26. © Z/Yen Group 2010 © Z/Yen Group 2011 Continuous Study

27. © Z/Yen Group 2010 © Z/Yen Group 2011 GFCI 11 – March 2012 Participate yourself at: www.financialcentrefutures.net

28. © Z/Yen Group 2010 © Z/Yen Group 2011 Thank you!