Standard Life backs HSBC relocating HQ outside UK

Standard Life would back HSBC if the global banking giant decides to relocate its headquarters outside the UK to escape from increasingly burdensome regulations.

David Cumming, head of equities at Standard Life Investments, said that HSBC was being put at a "competitive disadvantage" by "ever-increasing capital requirements".

"Logically, we would be supportive of a move if they chose to do that," he told BBC Radio 4's Today programme.

The warning comes ahead of the results of the Bank of England's latest round of stress tests, due for publication on 1 December.

In the current round, the BoE will examine lenders' ability to withstand a downturn in China and other emerging markets. A report over the weekend indicated that next year's stress tests, the parameters of which were due to be finalised in early 2016, would examine banks' ability to weather a recession in the US.

A decision from HSBC was expected by the end of the year, with Hong Kong thought to be the most likely option should London be abandoned.

Standard Life currently has a 1% shareholding in HSBC. At 1000GMT HSBC shares were up 0.75% to 535.1p.