FINANCIAL SERVICES

LONDON’S IMPORTANCE AND REGIONAL PROFILE

Supported by:

Financial Services: London

Therese Reinheimer-Jones: LONDON REGIONAL DIRECTOR

CONTENTS

• London’s unique position and its importance

• Key business districts and focus

• Skills mix

• Employer ‘fit’ and next steps

London’s uniqueness & strengths

• 34% global share of foreign exchange daily turnover

• LSE 29% share of global foreign equities turnover

• 70% of all eurobonds traded in London

• Leading location for IPOs in 2008 with 9% global share

• London 15% of global trade in commodities via Liffe, LME & ICE Futures Europe

• 353,000 ‘City’ jobs at the end of 2007

BUT cannot afford to rest on laurels and suffering as global financial system under strain

= opportunity as change is what London is good at

London Financial Services Fast Facts

London’s 5 major business districts

Business District Sector Focus

The City Finance, broking, insurance, legal

Westminster Private banking, hedge funds, real estate, Head Offices, government

Camden & Islington Finance, creative industries, architecture

Canary Wharf Banking, legal, media

Lambeth & Southwark Accountancy, consultancy, local government

Central Business District (CBD)

Zone plus Canary Wharf covers 10 miles employing 750k people in finance and business services

Source: Cabinet Office Prime Minister’s Strategy Unit London Project (July 2004)

• Ability of local people to feel engaged in their

community

• Need for a skilled workforce – reflecting local diversity

of the population

• Access to finance

• Regulation

• Economic situation

...but skills building is long term

Issues likely to impact on medium term growth

Geographical source of City non-graduate employees

Inner London

Outer London Kent Essex UK wide

Ancillary

Secretarial

Customer Support

Clerical

Technical - Insurance

Technical - Accountancy

Employees are rarely recruited from these areas

A sizeable minority of employees are recruited from these areas

Employees are predominantly recruited from these areas

Source: Corporation of London

London skills talent

• NSAFS Tower Hamlets success in placing 250 students

into employment in the City and Canary Wharf since

launch in January 2008

• People with the lowest level of skills not necessarily

lacking in ability but opportunity

• Must be flexibility in the development of communities

and infrastructure so that skills providers can respond

to business needs

Source: FT 26 November 2008 on the London Thames Gateway and skills

Skills Mix

• Hard e.g. statistical analysis and technical writing

• Soft e.g. communication, leadership and teamwork

• ‘Globalist’ e.g. foreign languages, cultural awareness

and ability to manage people and projects across

international financial time zones

Financial Services: a ‘big’ industry

• Directions – created by the FSSC http://www.fssc.org.uk/129_13.html?i=0&l1=true

• http://www.efinancialcareers.co.uk/

• Individual banks often have profiles of ‘a day in the life of’

• www.nsafs.co.uk

• Don’t forget small to medium enterprises – not just the big companies – a large proportion of financial services is made up of SME’s.

• Trade associations for example ‘The British Bankers Association’ , CISI and the CII.

• Not traditional qualifications but more professional qualifications such as CEFA

Recession v New Talent

• There is a real need to rebuild confidence among potential entrants to the industry, including students, so there's a job to be done in universities and colleges as well as on the high street with customers.

• I think the industry breaks down into different sectors as to how successful they are at recruiting talent. Traditionally the banking industry has been way ahead of the insurance and financial planning industries. In financial planning there is a real demographic problem arising where there are a lot of people reaching retirement age and not a lot of people coming into the business. Helping people to manage their finances effectively, with less reliance on the state, is absolutely critical. So anything we can do to make financial planning an attractive career path for people is vitally important.

John Tiner – Chief Executive Resolution Group

Questions and further details.....