Standard Chartered poised to review whether to move headquarters from London overseas once its new boss has settled into job

Published: 15:54 EST, 12 July 2015 | Updated: 15:54 EST, 12 July 2015

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Standard Chartered is poised to review whether to move its headquarters from London overseas once its new boss has settled into the job.

Chief executive Bill Winters is expected to kick off the process in the coming months – following in the footsteps of HSBC which embarked on a formal review of its London domicile in April.

Standard Chartered indicated at its annual general meeting in May that it is likely to assess its options in the near future.

Review: Standard Chartered indicated at its annual general meeting in May that it is likely to assess its options in the near future

The emerging markets specialist has come under growing pressure from shareholders – including major foreign investors – angered by the spiralling bank levy and tougher regulations in the UK.

Chairman Sir John Peace said although it has ‘no current plans’ to move, it was ‘listening carefully to shareholders’ views as the regulatory landscape becomes clearer’.

Winters, who took the helm last month, is thought to be keen to press ahead with the exercise and resolve the issue of its domicile so he can focus on turning around the bank’s spluttering performance.

Standard Chartered and HSBC have complained bitterly that they have been hit hardest by the bank levy which was introduced in the wake of the financial crisis in 2011 and has been increased nine times since then.

The levy is charged on global assets – meaning they have paid the lion’s share while UK-focused Lloyds and Royal Bank of Scotland have escaped relatively lightly despite being bailed out with taxpayers’ money during the financial crisis.

Standard Chartered is set to be one of the biggest beneficiaries of changes to the bank levy announced by the Chancellor in the Budget last week.

The bank levy will be reduced gradually, halving by 2021.

Standard Chartered, which focuses on Asia and emerging markets, will be largely immune to an 8 per cent surcharge on bank profits generated in the UK which comes into force next year.

Analysts at Investec predict the lenders’ bank levy bill will decrease from $540m this year to around $100m by 2021.

Investec expects HSBC’s levy will drop from $1.5bn to $300m by 2021, although the surcharge on its UK profits means its bill will increase next year.

Ian Gordon from Investec said Standard Chartered may still up sticks as shareholders baulk at having to pay an ‘elevated bank levy’ for the next five years.

But he added: ‘I think Standard Chartered needs to get this review out of the way. But the changes to the bank levy go a hell of a long way to dissuading them from feeling compelled to move’.

A Standard Chartered spokesman said: ‘We continue to keep our UK domicile under review. Although we have no current plans to move, we are listening very carefully to our shareholders views on this issue following the latest increase in the levy, the likelihood of any future increases, and its impact on the Group’s costs.’