The UK remained the top destination for foreign investment in financial services last year despite the Brexit vote, although France and Germany are seen as increasingly attractive.
Britain’s finance industry attracted 99 foreign direct investment projects in 2016, 5% up on 2015 and the highest number for a decade, according to a survey by accountancy firm EY.
London remains the most attractive European city for international investment, recording 69 projects – compared with just 19 for Paris and 12 for Frankfurt.
France and Germany rise
But France and Germany also boosted their rankings. France attracted 25 financial projects and Germany 39, increases of 25% and 18% respectively on 2015.
The City of London’s attractiveness as a place to do business fell from 74% to 62%, though, with investors concerned about access to the Single Market and the ability to recruit overseas talent. In contrast, Paris rose by 13 percentage points to 52%, while Frankfurt shot up by 20 points to 44%.
Some experts predicted thousands of finance jobs could be lost in the City after the referendum, due to fears over being able to sell financial services in Europe post-Brexit.
Record levels of investment
But while some companies such as Goldman Sachs are moving hundreds of staff to Paris and Frankfurt, the feared exodus has not occurred.