Barclays, HSBC and Standard Chartered face domicile move chatter

A TOP City fund manager has revealed institutional investors are in "regular talks" with Barclays, HSBC and Standard Chartered over possibly shifting their tax domiciles from the UK - but that most still favour the status quo.

It comes amid weekend reports that investors speaking for a combined 10 per cent of Barclays have told the board they would prefer the bank to be domiciled abroad given the regulatory and capital clampdowns in the UK, with New York apparently the preferred choice.

But a fund manager with a holding in the bank told The Scotsman yesterday: "It's a subject that is regularly discussed between shareholders and the company. It goes for two other banks as well, HSBC and Standard Chartered."

Both banks have significant Asian history and operations. "But I still do not see that it is anywhere near a majority institutional view that they should move from the UK," he added.

Yet the investor admitted it was "now a more closely-balanced argument than it was, say, two years ago. There's a view now that American banking regulation looks to be less onerous".

Barclays declined to comment. But the bank has talked privately of chief executive Bob Diamond telling the Treasury select committee earlier this year that Barclays held its UK domicile as "highly important".