Financial Services Overview. Financial Services Key Facts. Financial Services makes a major contribution to the Scottish economy, generating £6 billion (6.4%) of Scottish GDP
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Asset Management – 8.3%
General Insurance – 5.7%
Life Assurance – 15.6%
Banking – 62%
Financial Services – Breakdown of Expertise
Source: Deloitte SWOT/PEST 2004, ABI Dec 2005 Release
The financial services industry continues to impress and remains one of the
fastest growing parts of the Scottish economy. Since 2000, the Scottish
financial services industry has grown by over 40%.
Source: Scottish Executive 2006
Scotland’s Competitive Advantage
Scotland’s Competitive Advantage
Return on investment without a reduction in Quality
(Financial Times – fDi Magazine)
(*Source: Economist Intelligence Unit (EIU) June 2005)
Scotland’s workforce is estimated at 2.5 million people, with an employment rate of 75.3%
The quality of Scotland's workforce is internationally recognised. The people of Scotland make up one of the best trained, most reliable and cost-competitive labour forces in the world. With a world-renowned educational system and its ratio of graduates per capita, Scotland surpasses most countries of comparable size in Europe.
Labour market regulations in the UK including working hours, are the most flexible in Europe, and staffing costs are highly competitive. Scottish salary costs, including indirect social wage costs such as employer national insurance are among the lowest in Europe
Source: Scottish Executive, Analytical Service Division, May 2006
Illustration of Scotland’s universities – 21 higher education institutions including 14 universities and 43 colleges
Student population of over 276,000
Higher education 50,650
Further education 19,235
Range of courses:
Accountancy with finance
Finance with legal studies
IT and Financial Services
Business and Languages Skills
Scotland also has 17,389 qualified and 7,257 part-qualified Accountants.
Examples of some course include:
- Financial Services
- Accountancy with Finance
- Finance with Legal Studies
- Business Studies
- Risk Management
- IT and Financial Services
- Business Economics, plus many combined courses incorporating finance with languages.
Scotland has one of the best education systems in the world and continues to develop and adapt to meet the needs of a modern economy. The central belt of Scotland
has one of the highest concentrations in the UK
with over 270,000 students in higher education institutions (HIES) and further education
colleges (FECS) in 2003-04
There are 20 higher Education Institutions in Scotland, including 14 universities
Scotland also has 45 collages of further and higher education
There are over 65,000 student graduates with a degree qualification
Scotland has an innovative education system and courses are continually being developed to accommodate the needs of businesses. One example is the MSc in Finance and Investment from the University of Edinburgh
For further information an the awarding bodies and websites, see below.
Institute of Chartered Accountants in Scotland
The Chartered Institute of Management Accountants
The Association of Chartered Certified Accountants
Institute of Chartered Accountants in England & Wales
The Chartered Institute of Public Finance & Accountancy
Scotland has approximately 24,600 accountants whose qualifications cover a range of disciplines including: Management accounting, chartered accounting and applied accounting.
Nearly 1,000 accountants graduate annually with either this or ACCA and CIMA qualification in Scotland.
Source: Professional Bodies, June 2005
Scotland produces around 1,400 language
graduates each year. This is comprised of a
combination of language only qualifications and
courses where language is combined with other
Combining full and part-time study,approximately7,200
individuals in Scotland are studying for degree level or
above qualifications in languages in any given year.
There are some 190,000 foreign nationals in Scotland
many of them students, and many attracted by the
high quality of life, particularly in the culturally exciting
and thriving cities of Glasgow and Edinburgh.
In addition there are over 37,000 overseas students
studying for a degree or equivalent qualification, of
which nearly 19,000 are from European countries
(including the UK)
Source: Scottish Executive, February 2005
European Residents by Country of Birth
Promoting Scotland as a place to Live and Work
Relocation Advisory Service - www.scotlandistheplace.com - ‘first stop shop’ providing advice on visas, work permits,
studying and working, accommodation, health, leisure activities, cultural support
Encouraging Students in Scottish Universities to stay in Scotland
Student Visa Scheme
Post-graduate scholarship scheme
Scottish Networks International (SNI) Work Placements
Scottish Executive Paper: Attracting Fresh Talent to meet the Challenge of Growth
Industry and Linked Associations
The Chartered Insurance Institute is the premier professional organisation for those working in the insurance and financial services industry.
The Chartered Insurance Institute
Scottish Investment Operations Limited represents and promotes careers in Investment Operations (Asset Servicing)
Scottish Investment Operations Limited
Scottish Executive is the devolved government for Scotland.
The Scottish Executive
Scottish Financial Enterprise is the independent organisation formed in 1986 that supports and represents the interests of Scotland’s financial services industry.
Scottish Financial Enterprise
The Chartered Institute of Bankers in Scotland is Scotland’s leading provider of Professional Qualifications to the Financial Services Sector.
The Chartered Institute of Bankers in Scotland
Housing in Scotland provides very good value for money and a wide selection of properties are available, from large country residencies to compact townhouses. There is also a wide choice of public and private education, including a selection of international schools.
In the first quarter of 2006 the average price of a house in Scotland was £113,995
Source: www.hbosplc.com, May 2006
to 30 destinations throughout the
UK Europe, North America and
miles from the city centre
7 miles from the city centre
Connectivity – Scotland to London Airports
Scotland boasts four key airports:
Glasgow - Scotland’s largest airport & 5th in UK
flights a year,
facility catering for A320s.
Edinburgh - One of the UK’s fastest growing airports
to 75 destinations, Edinburgh is Scotland’s second largest and
the UK’s seventh largest airport.
Prestwick – MRO centre of excellence
Aberdeen – World’s busiest heliport
Scotland is served by a god choice of direct links from most UK cities. There are three major airports in Scotland :
- Glasgow International
- Glasgow Prestwick
As well as the major established airlines such as British Airways, bmi, low cost operators such as Easy Jet, bmibaby, Germanwings and Ryanair operate from Scotland. These airlines offer direct flights to other parts of the UK, Europe and worldwide locations.
Examples of direct flights include –
London, Amsterdam, Barcelona, Paris, Frankfurt, Milan, Dublin, Dubai, New York, Orlando, Toronto, Vancouver, Atlanta and Los Angeles
As well as having a vibrant economy, Scotland is
also renowned for the quality of life on offer:
More information can be found at:
www.visitscotland.com and www.talentscotland.com
INTERNATIONAL TAX COMPARSIONS
Detailed below in Table 1 is a comparison of all forms of taxation across major countries.
Scottish Development International (SDI) works with both Scottish-based and overseas companies and organisations. Its objective is to benefit the Scottish economy both by encouraging inward investment into Scotland and by helping Scottish-based companies to develop trade activities out with Scotland. SDI’s role is becoming increasingly complex since international trade can no longer be defined simply in terms of inward or outward flows of knowledge or other resources. Strategic alliances, joint ventures, value added reselling, franchising, technology licensing and intellectual property transfers are some of the categories of business partnership that may entail more complex exchanges.
SDI provided a wide range of support services, including advice, access to specialist expertise, selective business mentoring and development, market information, financial assistance, business location information, investor aftercare and specific services covering each phase of international trade activity.
More information can be found at:
Investment Incentives and Support
Regional Selective Assistance (RSA)
Regional Selective Assistance (RSA) is a national grant scheme, aimed at encouraging investment and job creation in the areas of Scotland designated for regional aid under European Community (ECI) Law (The assisted Areas). Grants for the project and, or, the number of new jobs created by the project.
Many service related projects tend to receive grant based on the number of jobs created and the salaries of those jobs.
Job Creation Assistance
Most projects require a substantial amount of capital investment. However for projects involving relatively low levels of capital expenditure but which involve the creation of new jobs, RSA can still make a meaningful contribution to project funding.
For these projects, we can calculate limits on potential grant by applying the appropriate aid intensity limit (based on the assisted area status) to the first 2 years’ salary costs of the projected jobs. This will generally mean that we can offer more grants for highly paid jobs.
Grant limits vary across the Assisted Areas – a map can be found at www.rsascotland.gov.uk. Assistance in Scotland typically ranges from 10-20% of eligible capital expenditure.
RSA is not limited to a single grant, it can be awarded several times provided the qualifying criteria are satisfied.
For more information visit: www.rsascotland.gov.uk
Training and Employment Grants
Scotland offers incentives to inward investors to help fund training and retraining of employees. Assistance is negotiated on a case by case basis and is dependant on the type and nature of the training required. Our Executives either in country or at our HQ in Scotland will be delighted to work with you in determining your location needs.
Once a company is established in Scotland, Scottish Development International continues to offer close support. A senior Executive will be available to assist you in setting in process. In partnership with other areas in the network, we shall ensure that your company continues to prosper and grow in Scotland, receiving ongoing assistance and advise.
Scottish Development International is the international arm of Scottish Enterprise, Scotland’s economic development agency
Key Companies in Scotland
Please click on the company logos to link into their site.
Franklin Templeton Investments
Scotland has a healthy mix of inward investors and world renowned indigenous companies with a highly developed supporting infrastructure in the financial services and Business Processing sectors. The following are some of the recent announcements we have been involved with:
In 2006, US Investment bank JP Morgan announced plans to create an additional 100 new, highly skilled jobs in the IFSD, as they expand its European Technology Centre.
JP Morgan’s operation in Glasgow develops software for its business throughout Europe and the organisation has been impressed with the pool of high quality technology graduates for recruitment in Glasgow.
The new jobs at JP Morgan include graduate recruits, junior and senior software engineers. The bank considered expanding its other operations in London, India and the USA before concluding Glasgow offered the best option.
Mike Ashworth, Head of IT for JP Morgan confirmed that the decision to go ahead in Glasgow was the result of a combination of factors, which included the software talents of the local workforce, as well as its knowledge of the financial community and the fact that these workers are relatively close to JP Morgan’s target client markets.
UK, 150 jobs, 2006
moneyQuest is one of the UK’s leading telephone and online mortgage, insurance and loan brokers. In 2006 they announced 150 new jobs at a Glasgow operation. In 2005 the company grew by 30% achieving over £8.5 million in turnover. The operation will involve employing highly skilled financial sales consultants, customer service staff and administrators on flexible working patterns.
HSBC Securities Services (UK) Limited is a wholly owned subsidiary of HSBC Holdings plc (HSBC) and is part of HSBC’s Institutional Fund Services (IFS) Division.
HSBC recently announced expansion of its Edinburgh Park operation creating a further 280 jobs. As a result of the project, HSS will become a key processing centre and centre of excellence within the IFS division for the provision of outsourced fund administration and performance measurement services.
Ace is a major global provider of business-to-business commercial property and casualty insurance and reinsurance. It was established in 1985 by a consortium of 34 Fortune 500 companies, to provide hard-to-find excess liability, and directors' and officers' coverage.
Ace went public on the New York Stock Exchange in 1993 and today employs about 1000 in the UK and 9000 world-wide. Ace recently announced they will open a centre of operations in Glasgow, creating 420 jobs handling underwriting, claims handling and support for insurance lines. The centre will also handle associated back-office functions such as credit control, finance and administration.
Morgan Stanley is one of the world’s largest financial services companies with over 60,000 employees worldwide operating from 600 offices in 28 countries. In Europe, the company has approximately 7,000 employees throughout 13 different offices. The company’s first presence in Scotland was in 1999, when the Credit Services division set up its first European operation in Cumbernauld in order to launch the company’s Discover Card product in the UK. This customer support facility currently employs 600 staff.
In early 2000, the European Institutional Securities Division underwent a review of its operations and a decision was taken to transfer certain functions from Canary Wharf to alternative sites outside of London. Competition was between Dublin, other UK centres and Scotland. In the summer of 2001 Glasgow was chosen as the location for the ISS shared service facility. The company presently employs over 800 people at the Glasgow operation due to the successful expansion in early 2006.
The confirmation of the new posts follows the recent completion of Morgan Stanley’s Card Services division’s acquisition of the Glasgow based Goldfish credit card operation in February 2006. With the retention of the 320 Goldfish employees’ jobs and with today’s announced expansion, this will bring the company’s total Scottish workforce to almost 1,800.