Many companies are dissatisfied with the rules that the EU has previously put in place. To trade certain securities, you must be established within the EU. This involved moving a number of trading platforms from London to Amsterdam. Furthermore, companies are not satisfied with the current state of the British pound.
Oversight and rules keep changing
On the other hand, large companies, including Shell and Unilever, have moved their headquarters to London, but according to De Waard, these have not yet been fulfilled. “They complain that the number of listings has fallen on the London stock exchange, but you can also see it on the Amsterdam stock exchange.” Also, there are stricter rules about it in the UK Special Purpose Acquisition CompanyS. These are companies that go public to finance an acquisition or merger within two years. “Besides, after all, the business climate in the Netherlands is more attractive.”
Not just the British regulator Financial Conduct Commission become more severe. Financial supervision is being strengthened worldwide. “This goes for America, for France and even for the Netherlands as the AFM has more to say,” says De Waard.
‘The Tories may be the world’s most business-friendly party’
The UK government is taking various measures to improve the business climate. According to De Waard, a lot has happened since the Conservative Party has been in government for fifteen years. “The Tories are perhaps the most pro-business party in the world.” The corporate income tax has been reduced to 19% and is therefore lower than in the Netherlands. Also, there is no dividend tax in the UK as in all EU countries.
“This is obviously why Unilever and Shell went to London,” says De Waard. Furthermore, no further measures are expected from the government at the moment. “The Conservative Party is in fierce competition with Labour. The left does well in the polls and the Conservatives have to do everything to stay in office.