The City of London Corporation is to open a US office for the first time in its history at a time of intense competition from New York for the crown of world’s leading global finance centre.
Chris Hayward, policy chairman of the Corporation and effective the “council leader” of the Square Mile’s ancient local authority and governing body, is due to make the announcement at a reception hosted at JP Morgan’s headquarters on Wall Street tonight.
There will be a second reception at the UK Embassy in Washington DC tomorrow night. The City’s new “ambassador” in America, managing director Ed Price will start in the role in late January.
It has not been decided whether the office will be in New York or Washington and it is not likely to open until 2025.
The Corporation already has offices in China, India and Brussels but has never had permanent representation in America.
Mr Hayward said: “The US is our biggest trading partner, we absolutely have to have a base there.”
He said Mr Price, a US passport holder, would have two roles: working with politicians and regulators in the capital but also on promoting investment opportunities in New York.
Mr Hayward added: “Being present in-market will allow us to forge deeper ties and collaborate on cutting edge issues that are at the forefront of finance. Whether that be fintech, asset management, insurance or professional services. The US represents shared cultural and business values and great opportunity for UK firms.”
Mr Price said: “At a time of great global challenges, it is important for the US and the UK to work together. Our nations promote strong trade. We promote investment. And we should better align on policy for financial and professional services. That’s why we’ve created this role.”
The appointment comes at the end of a tough year for the City’s traditional financial services with the number of IPOs falling to its lowest level for six years and several high-level defections from London to US stock exchanges.
However, there was better news for London’s reputation as a tech centre today with figures showing there have been 100 foreign direct investments this year, creating more than 4000 jobs, up 40%.
Of the 100, the most came from India with 29, followed by Europe (24%), and North America (23%).
Climate Tech has seen the fastest growth and makes up 23% of FDI into the capital, double last year. Climate tech investments include the world’s largest electric vehicle maker, BYD, which selected London as its UK headquarters.
Laura Citron, CEO of the Mayor’s business and tourism agency London & Partners, said her teams “help shortcut months by putting international companies directly in touch with the right people”.
Mayor Sadiq Khan said: “I’m delighted that London & Partners has reached this significant milestone of 100 international tech companies investing in our capital, boosting the economy and supporting local jobs.
“I’m committed to being London’s most pro-business Mayor ever and it’s fantastic to see the significant investment from climate technology, showcasing London’s commitment to decarbonisation and improving air quality as we continue working towards building a fairer, more prosperous London for everyone.”
