Sir Robert Worcester presented the findings of our survey of The City UK members and their attittudes to Britain's membership of the European Union

1. 1
Single Market Membership Survey
Presented by Sir Robert Worcester
© Ipsos MORI
30 October 2013

2. Methodology
2
• 101 interviews were conducted between 19 August and 24 October 2013
• Sample was drawn from TheCityUK members
•
444 leads provided by TheCityUK
•
Initial email from Chris Cummings inviting participation, followed by an email from
Ipsos MORI containing a unique online survey link
•
Reminder emails were issued during fieldwork to those who had not completed the
survey and telephone calls were also used to encourage participation. Five interviews
were conducted over the telephone
• Survey questions were developed by Ipsos MORI in consultation with TheCityUK,
including input and review by TheCityUK stakeholders
© Ipsos MORI

3. Sector profile comparison with survey respondents
3
Sector (Total members)
Sector (Survey respondents)
Accounting
9%
Accounting
Asset
management
9%
Asset management
29%
Banking
Private Equity or
Hedge Funds
15%
Insurance
18%
Legal
Other Financial or
Related…
None of these
17%
1%
Base: TheCityUK Members in sample file (444), TheCityUK Members responding (101)
© Ipsos MORI
15%
27%
Banking
Private Equity or
Hedge Funds
2%
11%
1%
20%
Insurance
13%
Legal
Other Financial or
Related…
None of these
26%
5%

4. Summary of the Findings
4
• Clear preference among members for remaining in the European Union – over eight
in ten say they would prefer the UK to remain in the EU (84%)
• All members surveyed believe the UK’s decision on membership is important for the
UK (100%) and nine in ten important (90%) for their business
• Over eight in ten said they think that staying in the EU is the best option for the
competitiveness of the UK as a financial centre (84%)
• Over eight in ten again, think that a complete exit from the Single Market and the EU
would lead to a worse competitive position for the UK in financial services (81%)
• Nearly nine in ten agree that the UK as a whole benefits economically from its
membership of the EU (88%)
• Almost three quarters agree that their firm benefits from UK membership of the EU
(74%)
• Nearly half say the UK’s decision on membership is very important for their
business (48%)
• Only one in twenty-five is in favour of leaving the single market (4%)
• Ease of trading and access to customers, as well as a single regulatory framework
for financial services, are seen as the key benefits of EU membership (c. 46%)
© Ipsos MORI

5. There is a clear preference for remaining in the EU
5
Q. “Which one of these options would be your preferred position for the UK in
relation to the EU?”
The UK remains a member
of the EU
84%
The UK leaves the EU but
remains within the Single
Market
10%
The UK leaves the EU and
the Single Market
completely
None of these is my
preferred option
Don’t know
5%
1%
0%
Technical note: Base: TheCityUK Members responding (101); Fieldwork: 19 August – 24 October 2013
© Ipsos MORI

6. Nine in ten say the UK’s decision will be important for
their business, and all say important for the UK
Q. “Overall, how important would you say the
UK’s decision about its membership of the EU
will be for the future of your business?”
Not at all
important
Very
important
6%
42%
90%
Q. “Overall, how important would you say the
UK’s decision about its membership of the EU
will be for the future of the UK?”
Fairly
important
Don’t know
3% 1%
Not very
important
6
48%
13%
100%
87%
Fairly
important
Technical note: Base: TheCityUK Members responding (101); Fieldwork: 19 August – 24 October 2013
© Ipsos MORI
Very
important

7. The benefit of the EU to the UK economically is widely
recognised
Q. “To what extent do you agree or disagree
that the UK as a whole benefits economically
from the UK’s membership of the EU?”
Q. “To what extent do you agree or disagree
that your firm benefits from the UK’s
membership of the EU?”
Strongly
disagree
Strongly
disagree Don’t know
Tend to
disagree
Neither
3%
3%
4%
4%
1%
Tend to
disagree
Strongly
agree
1%
9%
Strongly
agree
Neither
16%
88%
32%
74%
56%
Tend to
agree
33%
Tend to
agree
Technical note: Base: TheCityUK Members responding (101); Fieldwork: 19 August – 24 October 2013
© Ipsos MORI
7
41%

8. Only one in twenty are in favour of leaving the Single Market
8
Q. “Which of these options best reflects your view of what is best for the UK’s long
term economic prosperity?”
Remain in the Single Market no matter
how it develops
Remain in the Single Market only if there
are no further transfers of economic
decision-making powers
Remain in the Single Market only if
further barriers to free movement are
removed
Leave the Single Market
Other / none of these
Don’t know
Technical note: Base: TheCityUK Members responding (101); Fieldwork: 19 August – 24 October 2013
© Ipsos MORI
3%
11%
5%
42%
11%
70%
28%

9. Ease of trading and access to customers, as well as a single
regulatory framework for financial services, are key benefits
9
Q. “Which, if any, of the following are the most significant benefits to your
business of the UK’s membership of the European Union?”
49%
46% 1st
44%
Ease of access to customers in the EU
A single regulatory framework in the EU for
financial services
Ease of cross-border trading within the EU
Ease of visa free recruitment of people from
across the EU
Increasing harmonisation of standards across the
EU
29%
28%
26%
Being part of EU Free Trade Agreements
EU initiatives to support business, e.g. European
Investment Bank, Structural Funds
There are no significant benefits to our business
from the UK’s membership of the EU
Other (please specify)
Don’t know
6%
9%
1%
2%
Technical note: Base: TheCityUK Members responding (101); Fieldwork: 19 August – 24 October 2013
© Ipsos MORI
2nd

10. Regulatory change and volume are the main challenges
10
Q. “Which, if any, of the following are the most significant challenges for your
business of the UK’s membership of the EU?”
65%
Regulatory changes from the EU
56%
The volume of EU regulation
Uncertainty around the future of
the euro / eurozone
Uncertainty over the UK’s
membership of the EU
Uncertain economic outlook for
the EU
The incompleteness of the Single
Market
Industry-specific taxation from
the EU
Don’t know
37%
31%
26%
21%
16%
2%
Technical note: Base: TheCityUK Members responding (101); Fieldwork: 19 August – 24 October 2013
© Ipsos MORI

11. Two thirds of respondents feel remaining in the Single Market but outside
the EU would mean a deterioration in the UK’s position
11
Q. “In a scenario where the United Kingdom left the
European Union but remained in the Single Market,
do you think the UK’s overall competitive position as
a financial centre would, on balance, improve, remain
unchanged or deteriorate?”
Don’t know
Q. “In a scenario where the United Kingdom left both
the European Union and the Single Market, do you
think the UK’s overall competitive position as a
financial centre would, on balance, improve, remain
unchanged or deteriorate?”
Don’t know 2% Improve
Improve
11%
12%
Remain
Remain
unchanged
7% 3% unchanged
12%
81%*
53%*
88%
65%
Deteriorate
Deteriorate
00
* Net scores
Technical note: Base: TheCityUK Members responding (101); Fieldwork: 19 August – 24 October 2013
© Ipsos MORI

12. Over eight in ten believe staying in the EU is the best option for
the competitiveness of the UK as a financial centre
12
Q. “Which of the following scenarios would be the best option for the overall
competitive position of the UK as a financial centre?”
The UK remains a
member of the EU
84%
The UK leaves the EU
but remains within the
Single Market
The UK leaves the EU
and the Single Market
completely
Don’t know
11%
4%
1%
Technical note: Base: TheCityUK Members responding (101); Fieldwork: 19 August – 24 October 2013
© Ipsos MORI

13. On balance half say exit of the Single Market is unlikely
to mean relocation
13
Q. “In a scenario where the UK left the Single Market, how likely is it that your firm would relocate
at least some of its headcount from the UK to a location within the Single Market?”
49%
37%
1% 10%
27%
Certain to
Not very likely
20%
Very likely
Not at all likely
Technical note: Base: TheCityUK Members responding (101); Fieldwork: 19 August – 24 October 2013
© Ipsos MORI
29%
13%
Fairly likely
Don't know

14. Aspects of regulation are the most frequently mentioned priorities
for improving the working of the Single Market
14
Q. “What areas, if any, do you think the UK should be prioritising to improve
the working of the Single Market?”
Top 10 open-ended responses
11%
Deregulation/reduce regulation/legislation
Streamlined/harmonised/ consistent regulations/
laws/standards
Freedom of services/free market in services/cross
border financial services
Remove barriers/trade barriers/free up trade with
other members/stop protectionism
Regulation/legislation/ regulatory issues - no
more specific
10%
8%
7%
6%
4%
Financial services/ banking
Economy/economic recovery/growth
3%
Reduce red tape/ bureaucracy
3%
Greater involvement in the EU/participating
2%
Financial regulation/law
2%
Technical note: Base: TheCityUK Members responding (101); Fieldwork: 19 August – 24 October 2013
© Ipsos MORI

15. 15
Thank you. Questions?
For TheCityUK press enquiries please contact Juliet Carey,
juliet.carey@thecityuk.com, 0207 367 0005
bob.worcester@ipsos-mori.com, +44 20 7347 3066
matthew.chatterton@ipsos-mori.com, +44 20 7347 3112
alastair.cox@ipsos-mori.com, +44 20 7347 3256
© Ipsos MORI
30 October 2013
This work was carried out in accordance with the requirements of the international quality standard for market research, ISO 20252:2006 and with the Ipsos MORI Terms and Conditions which can be found here

16. More than a third say reform to the Single Market would make them
much more likely to prefer the UK remaining part of the EU
16
Q. “If the EU were to be reformed in ways that improved the operation of the Single
Market, how likely, if at all, would you be to prefer the UK remaining part of the EU?”
36%
Much more likely
A little less likely
Base: TheCityUK Members responding (101)
© Ipsos MORI
31%
A little more likely
Much less likely
30%
3%
Would make no difference
Don't know

17. Opinion is divided on whether the prospect of a
referendum is creating uncertainty
17
Q. “The prospect of a referendum on the UK’s membership of the EU in 2017 has created an
uncertainty that is affecting decisions in our business”
41%
10%
31%
Strongly agree
Neither agree nor disagree
Strongly disagree
Base: TheCityUK Members responding (101)
© Ipsos MORI
34%
23%
22%
12% 2%
Tend to agree
Tend to disagree
Don't know

18. Sample profile (1)
18
Size of Firm by Number of UK Employees
Sector
27%
Banking
1%
20%
13%
Other Financial or Related
Professional Services
None of these
Base: TheCityUK Members responding (101)
© Ipsos MORI
9%
5%
250 - 499
7%
500 - 999
Insurance
Legal
9%
51 - 249
15%
Asset management
Private Equity or Hedge
Funds
Less than 50
11%
Accounting
22%
1,500 - 4,999
26%
5%
9%
1,000 - 1,499
39%
5,000+
Don't know
*

19. Sample profile (2)
19
Role
Location of Global HQ
18%
13%
CEO
Chairman
0%
Chief Investment Officer
2%
Other Executive… 5%
NED/Board Member
3%
Partner
10%
69%
UK
CFO
Other Director/Manager
None of these
© Ipsos MORI
8%
32%
Public/Govt Affairs
Communications
Elsewhere in
Europe
1%
13%
3%
Rest of world
23%