HSBC splashes $5m on new London wealth centre despite non-dom exodus
HSBC has opened a new wealth centre in the heart of London to cater to high-earning customers in defiance of fears of an exodus of wealthy investors from the UK.
Britain’s most valuable bank has leased two floors of a fifteen-storey tower in Piccadilly, formerly the home of British magazine The Economist, in a $5m investment.
HSBC said the new venue is designed for Premier and private bank clients to meet with relationship managers on an invite-only basis and receive a stand-out, personalised wealth management service.
The centre also boasts an open-plan event space on the eighth floor, which will be used for various private functions including educational sessions and seminars and networking events.
HSBC said it aims to replicate the successes it has seen in Asia and boost the UK’s position as a destination for international investment.
Wealth exodus concerns
The $5m move comes despite concerns that more and more wealthy Brits are leaving the UK for more tax-efficient destinations following changes to the non-dom regime as well as rising taxes in the UK.
The UK and China – HSBC’s biggest markets – are thought to have seen the highest number of high net worth departures so far this year.
But HSBC said the UK remains a top destination for high net worth investors, adding its research has found that globally, portfolio diversification for affluent people is on the rise, and the UK is amongst the top three destinations that affluent people across the world want to invest into.
Xian Chan, Head of Premier Wealth at HSBC UK, told City PM: There’s no secret, it’s been well publicised that a number of high profile, high net worth and ultra high net worth have made some decisions. It’s been out there in the press.
“Our job regardless of customers their client’s decision is to support them through that.
“What we see is that the UK still remains a really, really important wealth hub for our clients and we don’t believe that that’s going to change.
“If you just look around you, there’s not many other cities anywhere in the world which can compete with some of the landmarks that you see here. We have a very unique thing in this city in particular, but also the country more broadly.”