Some of the largest investors of Britain, who place billions of pounds in UK sector, warned the Treasury about
the possible capital flight if the present regulatory uncertainty continues.The UK investors who take decisions regarding the investment of billions of pounds of pension fund argued that further regulations from the Independence Commission will add further regulatory burden. According to the investors although some changes are needed may be needed, but regulations which have taken
place since financial crisis of 2007/08 has caused inconvenience to the investors.

Due to lack of certainty in regulations related to banks and credit flows to support economic activities, the Britain’s economic growth will be constrained, as the investors put their money in other foreign territories or different sectors.

Similar trends & tendencies are observed in American investors, who had also expressed their concerns about the regulations with Treasury. Restlessness has been observed in the investor community about how new banking regulations are being put together.

A similar issue was raised in energy and water sectors of UK economy, a major Invesco Perpetual, who has shown its concern over increasing regulations of utilities, which has made investment decisions harder.

Investment Experts and analysts have commented that Return on Capital (ROE) should be considered carefully. There is a consistent view that capital market will no matter what the regulators do. The bulk of the assets usually come from the small investors. Lack of healthy returns means that pension funds and small investors are suffering.

The Global investors have also said that they are not going to invest in UK banks until rules and regulations pertaining to banking sector become clear.

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