Schroders' Buxton fears HSBC to exit UK over ring-fencing plans

Schroders' Richard Buxton has warned plans to ring-fence banks will force HSBC and Standard Chartered to redomicile outside the UK, causing more woe for the economy.

Last week the Independent Commission on Banking (ICB)’s final report called for banks to ring-fence their retail arm from their wholesale businesses to prevent consumers bearing the brunt of investment banking losses. Buxton said the report made “immensely distressing reading”, adding the ring-fence plan is a “bad idea and completely unnecessary.” “On a three-year time horizon, is it extremely likely it will encourage HSBC and Standard Chartered to switch domicile. “They may not necessarily lose their London listings but, in terms of the UK shooting its economy in the foot by losi...