UK accounting watchdog mulls historic move out of city
UK's accounting watchdog, the FRC, eyes a move out of London's financial center by year-end. Canary Wharf or Stratford are potential new hubs, reflecting a shift in regulatory landscapes.
The Financial Reporting Council (FRC), the UK’s guardian of accounting standards, is contemplating a major relocation. By year-end, the FRC could be leaving its traditional home in the City of London, a move coinciding with stalled plans for a secondary office in Birmingham.
Canary Wharf or Stratford: a new regulatory hub emerges?
The FRC is reportedly weighing two potential landing spots in London’s east: Canary Wharf and Stratford. Canary Wharf, a well-established financial district, has witnessed an exodus of major banks and law firms in recent years, fueled by the rise of remote work. However, this could present an attractive opportunity for developers seeking to fill vacancies. Additionally, the area boasts a concentration of regulatory bodies, including the Competition and Markets Authority.
Stratford, situated near the Olympic Park, is another contender. Here, the FRC would find itself in closer proximity to the Financial Conduct Authority.
Shifting sands in the regulatory landscape
A potential FRC departure from the City would be a symbolic moment. The district has historically been synonymous with the UK’s financial sector. However, the post-pandemic embrace of remote work, coupled with the government’s push to decentralize financial services, is prompting a reshuffle. If the FRC leaves, the Prudential Regulation Authority would remain as the sole major financial regulator in the City’s core.
Birmingham expansion on hold
The FRC’s potential move coincides with delays in establishing a secondary office in Birmingham. The government previously designated Birmingham as the home for a new, more powerful audit regulator, with the intention of relocating staff from London. However, this initiative has stalled, casting doubt on the pace of the FRC’s Birmingham office expansion. While the FRC still intends to open a Birmingham office, the growth might be slower than initially anticipated. Some staff have already been temporarily relocated to the Birmingham headquarters of another regulatory body.
Uncertainties loom
The FRC’s final decision on its new headquarters is expected in the coming months, with the Government Property Agency also involved in discussions. Whether the FRC chooses Canary Wharf, Stratford, or opts for a completely different location remains to be seen. One thing is clear: the UK’s regulatory landscape is undergoing a transformation, with the City of London potentially relinquishing its long-held position as the exclusive domain of financial watchdogs.
