EDINBURGH, May 14 (RIA Novosti), Mark Hirst – Following independence, Scotland would have a “harmonized” financial regulatory system with the rest of the UK that would ensure the country’s large financial institutions do not relocate to England, a Scottish business organization told RIA Novosti.
The comments came after Standard Life, one of Scotland and the UK’s biggest pensions and investment firms, said it was drawing up contingencies to relocate its business to England if Scots back independence in a referendum to be held September 18.
Standard Life Chairman Gerry Grimstone told a meeting of the company's shareholders that he feared the introduction of a new Scottish financial regulatory system following a “yes” vote, saying “we would not hesitate, for example, to move parts of our operations to England, where the majority of our customers are located, or move the registration of our funds.”
But a spokeswoman for Business for Scotland, a pro-independence organization representing over 1,900 businesses, insisted an independent Scotland would have broadly the same system of regulation as the rest of the UK and pointed to Standard Life’s activity in over 50 countries.
“Standard Life is an international company with funds invested across the world,” Maggie Stanfield of Business for Scotland told RIA Novosti.
“Of course [Standard Life] must have an appropriate marketing strategy plan in place at all times and will continue to monitor its position,” Stanfield added.
“Mr. Grimstone has made clear that the company is not considering moving the 5,000 staff it employs in Edinburgh,” she said.
Pointing to the Scottish Government’s white paper on independence, which details the regulatory framework and institutions of state within a newly established independent Scotland, Stanfield added, “an independent Scotland will work on a closely harmonized basis with the UK regulators, delivering an aligned conduct regulatory framework, to retain a broadly integrated market across the Sterling Area.”
Standard Life has long been opposed to decentralization of power from London to Scotland. Prior to the establishment of the devolved Scottish Parliament in 1999, the company threatened it would relocate to England.
The company has been based in Edinburgh for 189 years and has 1.5 million stakeholders located in over 50 countries.
