London’s influence is expected to decline, the survey revealed; only a quarter of banking, asset management and hedge funds leaders now think that London will still be a contender for the world’s pre-eminent global financial center in five years’ time.

The survey for the financial services firm Kinetic Partners’ 2014 Global Regulatory Outlook report saw the amount of financial services executives considering London the leading financial center drop to 40 per cent, down from 65 per cent in the same survey last year.

Conversely, New York is moving up, with 49 per cent preferring it as the world’s key financial center, up from 31 per cent a year ago. Looking forward, 40 per cent of survey respondents still expect New York to lead the finance world in 2018, but just 26 per cent think the same of London, down from 41 per cent last year.

There are key reasons for New York’s sudden intake on the financial services market, the firm said, noting that recent regulatory changes and the way these have been handled in the different financial centers is an important factor.

“Despite all the turbulence in global financial markets over the past five years, New York continues to host institutions who are focused on building strong returns for investors. Whilst new regulations have been debated and enacted in many cases, the industry has largely adapted, and confidence appears strong in New York,” said Kinetic’s regulatory lead in New York, Chris Lombardy.

The survey also revealed frustration with regulators’ efforts when it comes to stabilizing the financial system, protecting investors, reacting to public opinion and creating a framework for growth. Almost half of those questioned believe that no regulator anywhere has struck the right balance between these competing priorities.

Curiously, the report also showed that eastern contenders like Hong Kong and Singapore are gaining ground. One in ten respondents named Hong Kong as the leading center in five years, compared with 3 per cent who believe that it leads today. There was some optimism about Singapore as well, with 6 per cent marking it for future leadership, against 1 per cent today. Shanghai, however, clearly attracts the most attention.

“The emergence of Shanghai as a future global financial center is a major theme in this years’ survey. Given that China also has financial expertise centerd in Hong Kong, as well as a fast growing, but lesser known, financial services center in Shenzen, if China’s model proves successful it will be copied in similar center. As such, rising competition for markets such as London is only going to grow,” said Julian Korek, chief executive and founding member of Kinetic Partners.

When asked to name the leading emerging financial center in 2018, almost half the respondents named Shanghai, while just 7 per cent mention Dubai and Sao Paulo, the second most popular choices.