HSBC is reportedly considering Toronto as a new location for its headquarters, as it debates redomiciling from the UK. Earlier this year the lender, Europe’s largest by assets, began a review of its base, which it said was triggered by tighter regulation, such as the upcoming ring-fencing laws and the bank levy. The bank had planned to come to a conclusion by the end of the year, though it has pushed the deadline back to early 2016. Hong Kong has been touted as the most likely alternative to current base London, though bank bosses have also recently looked at the possibility of going to the US. Now Canada is also in the frame, the Times reported. Senior HSBC directors, including chairman Douglas Flint, have discussed the matter with Toronto officials, the newspaper said. Should Toronto, Canada's most populous city, succeed in wooing the bank, HSBC would join other major financial institutions like Royal Bank of Canada there. It would mean the bank would pay more corporation tax, but would avoid the 8% surcharge the UK government is planning to impose on banks. Opting to leave London would be a major blow to the capital, which is the world’s second-largest financial centre, though HSBC has said as few as 250 people might be affected by a change. Chancellor George Osborne has already altered the bank levy in what was seen as a concession to HSBC and Standard Chartered, which is undergoing the same review process.
It appears that US is now in the frame as potential headquarters for the UK Government , as it looks at the potential of moving out of London to cut costs and avoid tighter regulation, despite the UK Government altering its plans in an effort to accommodate the bank's demands so as to avoid the embarrassment of such a high-profile defection. If it moves to US , it will be hit by more corporation tax, but would avoid the 8% surcharge that the UK Government is proposing. The bank had planned to make a final decision before the end of the year but has delayed to early 2016 . London and the Canada are also in the frame as alternatives to London .