The rise of foreign owned City businesses in the UK

Five questions answered.

A new report has revealed that the UK has a large percentage of foreign owned City businesses, indicating that the UK is viewed as a viable investment by overseas firms. We answer five questions on foreign investment in the UK.

What is the current per cent of foreign-owned financial services businesses in the UK?

According to a new report published by MAS, an independent M&A adviser, which was produced in conjunction with UK Trade & Investment, the government’s export agency, 46 per cent of UK financial services companies worth more than £100m are overseas owned.

In 2011 and 2012 the most active acquirers of UK financial services firms were overseas-owned businesses. Eighty per cent of those already had existing UK operations at the time of investing, which suggests they are committed to investing in Britain for the long-term.

Which foreign country is the biggest investor?

America. Over 47 per cent of all foreign investments in the UK are from the US, companies from which see the UK as a spring board into the rest of Europe.

What do these figures say about how overseas businesses view the UK financial market place?

The report says that these figures suggest that the UK financial market is viewed as an attractive market for companies looking to expand their business operations. It is thought this is because the UK is well placed to take advantage of emerging markets such as Brazil, Russia, India and China, all of whom increased their investment in the UK by 29pc in the last year.

What do the experts says?

Olly Laughton-Scott, founding partner of IMAS, told The Telegraph: “The report reflects how extraordinarily open UK business is to overseas investment. America, with its huge financial services economy, is using the UK as its springboard into Europe. As America expands its interests, it will place more emphasis on the UK.”

He added: “As Asia becomes truly globalised, this will play to London’s strengths; they will come to Britain. China [investment] has grown the most rapidly over the last year and as financial services becomes increasingly globalised, we will see the largest proportion of that investment come to the UK.”

How is the financial services market doing in general?

According to the UK trade minister, Lord Green, who spoke to The Telegraph, the UK remains the number one destination for financial services investment in Europe.

The IMAS also offered a positive outlook by saying that retrenchment that has taken place since the credit crisis seems over and the sharp drop in the number of authorised financial services that occurred in 2008 is slowing considerably. However, some quality people are said to have left the industry due to a new rule change that requires independent advisers to register with the Financial Services Authority.

Photograph: Getty Images

Heidi Vella is a features writer for Nridigital.com

John Moore
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The man who created the fake Tube sign explains why he did it

"We need to consider the fact that fake news isn't always fake news at the source," says John Moore.

"I wrote that at 8 o'clock on the evening and before midday the next day it had been read out in the Houses of Parliament."

John Moore, a 44-year-old doctor from Windsor, is describing the whirlwind process by which his social media response to Wednesday's Westminster attack became national news.

Moore used a Tube-sign generator on the evening after the attack to create a sign on a TfL Service Announcement board that read: "All terrorists are politely reminded that THIS IS LONDON and whatever you do to us we will drink tea and jolly well carry on thank you." Within three hours, it had just fifty shares. By the morning, it had accumulated 200. Yet by the afternoon, over 30,000 people had shared Moore's post, which was then read aloud on BBC Radio 4 and called a "wonderful tribute" by prime minister Theresa May, who at the time believed it was a genuine Underground sign. 

"I think you have to be very mindful of how powerful the internet is," says Moore, whose viral post was quickly debunked by social media users and then national newspapers such as the Guardian and the Sun. On Thursday, the online world split into two camps: those spreading the word that the sign was "fake news" and urging people not to share it, and those who said that it didn't matter that it was fake - the sentiment was what was important. 

Moore agrees with the latter camp. "I never claimed it was a real tube sign, I never claimed that at all," he says. "In my opinion the only fake news about that sign is that it has been reported as fake news. It was literally just how I was feeling at the time."

Moore was motivated to create and post the sign when he was struck by the "very British response" to the Westminster attack. "There was no sort of knee-jerk Islamaphobia, there was no dramatisation, it was all pretty much, I thought, very calm reporting," he says. "So my initial thought at the time was just a bit of pride in how London had reacted really." Though he saw other, real Tube signs online, he wanted to create his own in order to create a tribute that specifically epitomised the "very London" response. 

Yet though Moore insists he never claimed the sign was real, his caption on the image - which now has 100,800 shares - is arguably misleading. "Quintessentially British..." Moore wrote on his Facebook post, and agrees now that this was ambiguous. "It was meant to relate to the reaction that I saw in London in that day which I just thought was very calm and measured. What the sign was trying to do was capture the spirit I'd seen, so that's what I was actually talking about."

Not only did Moore not mean to mislead, he is actually shocked that anyone thought the sign was real. 

"I'm reasonably digitally savvy and I was extremely shocked that anyone thought it was real," he says, explaining that he thought everyone would be able to spot a fake after a "You ain't no muslim bruv" sign went viral after the Leytonstone Tube attack in 2015. "I thought this is an internet meme that people know isn't true and it's fine to do because this is a digital thing in a digital world."

Yet despite his intentions, Moore's sign has become the centre of debate about whether "nice" fake news is as problematic as that which was notoriously spread during the 2016 United States Presidential elections. Though Moore can understand this perspective, he ultimately feels as though the sentiment behind the sign makes it acceptable. 

"I use the word fake in inverted commas because I think fake implies the intention to deceive and there wasn't [any]... I think if the sentiment is ok then I think it is ok. I think if you were trying to be divisive and you were trying to stir up controversy or influence people's behaviour then perhaps I wouldn't have chosen that forum but I think when you're only expressing your own emotion, I think it's ok.

"The fact that it became so-called fake news was down to other people's interpretation and not down to the actual intention... So in many interesting ways you can see that fake news doesn't even have to originate from the source of the news."

Though Moore was initially "extremely shocked" at the reponse to his post, he says that on reflection he is "pretty proud". 

"I'm glad that other people, even the powers that be, found it an appropriate phrase to use," he says. "I also think social media is often denigrated as a source of evil and bad things in the world, but on occasion I think it can be used for very positive things. I think the vast majority of people who shared my post and liked my post have actually found the phrase and the sentiment useful to them, so I think we have to give social media a fair judgement at times and respect the fact it can be a source for good."

Amelia Tait is a technology and digital culture writer at the New Statesman.