The UK remains the “preferred destination” in Europe for foreign direct investment (FDI) into financial services with over a quarter of such projects now in the UK, a new survey from big four accounting firm Ernst & Young (EY) has revealed.

EY’s most recent Attractiveness Survey for Financial Services found the UK attracted FDI investment for 76 financial services projects in 2022, reflecting a 17 per cent rise from 54 in 2021.

The UK bested the enactment of 45 projects in second-place France during 2022 – 15 fewer than in 2021 – while projects in Spain and Germany tied in third place with 31 each during the same period.

The figures indicate that more than a quarter of all European financial services FDI projects are situated in the UK, which boosted its market share from 23 per cent in 2021 to 26 per cent in 2022, EY said.

France’s 2022 figures secured it 15 per cent of Europe’s financial services FDI projects, with Germany and Spain standing at around 11 per cent a piece.

EY’s survey found there had been a five per cent rise in FDI projects across Europe overall, from 277 in 2021 to total 292 in 2022.

“The strength of the UK financial market has meant that – even through challenging times – investors see it as the most attractive European financial services market,” said Anna Anthony, UK financial services managing partner at EY.

Despite factors such as Brexit, Anthony noted that investors recognise the UK financial system’s “strength, gold-standard governance and resilience” and continue to view it as a preferred destination for “growth, innovation, and access to top talent”.

The survey follows reports that the Bank of England is considering a dilution of the interpretation of the Basel 3 rules detailed in its initial proposals ahead of the standard's implementation in 2025.

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