UK ECONOMIC

ANALYSIS
FDI in figures
Foreign Direct 2013 2014 2015
Investment
FDI Inward Flow 47,592 52,449 39,533
(million USD)
FDI Stock 1,489,940 1,744,230 1,457,408
(million USD)
FDI Inwards (in 10.9 10.4 8.0
% of GFCF*)
FDI Stock (in % 54.9 58.3 51.1
of GDP)

Source: UNCTAD, 2015

GDP Growth rates and Interest rates

Source: tradingeconomics.com
Business and Trade Overview
UK Labor market
 UK FINANCIAL
SERVICES
RECOMMENDATION
Challenges for subsidiaries of International
Firms
Understanding the expectation of
regulators

Choosing the right governance model

Choosing the right people

Practical steps being taken by firms

Understanding the expectation
of regulators
Maintaini
ng the
Principle for business (PRIN)
control
over Threshold Conditions (COND)
firm's
activities Senior Management Arrangements,
System and Control (SYSC)
Statements of Principle and Code of
practice for approved person (APER)
 PRI CON SYS APE
N D C
Maintain a clear and
R An
approved
Have appropriate
appropriate apportionment of person
Conduct
business with
financial responsibilities among ensures the
its directors and senior
resources to managers. business he
skill and care carry on its
activities. Ensure control is is
exerted across accountable
different operations is organized.
Clearly set out and geographical
"Close links" (ex: areas.
parent, subsidiary or So that it can
To organize Clear organization
and control its
controlling party)
structure with well
be
which is prevent the controlled
effectively defined, transparent
FCAs effective
supervision of the
and consistent lines effectively.
of responsibilities.
firm.
Choosing the right
governance model
Simple to understand and articulate.
Allow for focus on specific product
and customers.
Clear reporting lines and
accountability.
Silo approach can lead to lack of
cohesion across regions.
 Focused approach to products/functions
Allows for combination of resources in similar areas.
Complex dual reporting lines and accountability.
Potential for mixed messages and confusion.
Choosing the right people

Non Benefit from relevant knowledge and

executi experience from different industries
ve that may help distinguish a firm
Directo from its competitors.
rs Better positioned to provide
effective external oversight and
scrutiny of the activities of the
organization.
Approve Seek to minimize the delay by
d
persons ensuring they are aware of the
and regulators expectations
Significa
nt Providing all of the required
influenc information in a timely
e manner.
function
s
Practical steps being taken by
firms.
References
Delloite (2014), Governance in UK Financial Services:
Challenges for subsidiaries of international firms.