London is constantly referred to as the financial centre of the world. Despite in recent years it has lost ground to New York because of Brexit, the city still maintains its leading position in global rankings. For example, in the Global Financial Centres Index (GFCI), London is ranked 2nd in 2023.
Historical background, specific legislation and leading positions in financial services, such as insurance and audit, help the city to maintain this status.
London is divided into several boroughs, separate from which stands the business district of London City. In fact, it is a city-state with its own authority and police, which is mainly engaged in the investigation of financial crimes. Even the powers of the Mayor of London do not apply in London City, as there is its own head of the district. It is in London City that all financial transactions, including those with foreign companies, take place.
General autonomy and its own jurisdiction attract companies from all over the world to the capital. If an entrepreneur is just starting a business and looking for funding, they often choose between New York and London. The capital of Great Britain is often chosen by companies with non-transparent businesses, since the legislation of London City allows them to draw up documents in a way that cannot be done in other countries.
As a result, 70% of London City's revenue comes from providing financial services to clients from the US and EU.