London is likely to be the main beneficiary of strict regulation – particularly the Sarbanes-Oxley Act – in the U.S. as companies will cross the pond, making the city the “cosmopolitan capital of commerce,” according to a study by IBM’s Institute for Business Value and The Economist Intelligence Unit. As more financial professionals flood London, the report suggests, competition will increase – and drive down the size of bonuses, which will be rewarded based on merit. The study of more than 400 executives from nearly 300 of the world’s largest financial institutions also found that companies will increasingly tap Eastern Europe to handle back-office work – but the money these companies save will be reinvested in London. The study also found that hedge funds will be turning to Eastern Europe for mathematicians and actuaries.
