A new study by the UK's Eversheds law firm reveals that the "long arm of U.S. regulation" is causing companies in the UK to think twice about doing business here, according to MSNBC. The law firm surveyed senior management from 530 top companies in the UK, the story says, and one in 10 of the companies has been "subject to U.S. regulation."
Other interesting findings:
- 30 percent of those surveyed say the degree of regulation in the U.S. encourages them to "forum shop" so as to avoid the legal system here.
- 20 percent say U.S. regulatory requirements will decrease international trade.
And though the survey was conducted to coincide with the fifth anniversary of the Sarbanes-Oxley Act, Sarbox isn't the only thing UK firms are worried about. According to the story:
Concerns about the long arm of US regulation were matched with worries about the new Extradition Act, which has reduced the amount of evidence that prosecutors must submit when seeking extradition and has made this a largely administrative process.
Of those questioned, 12 percent were opposed to the new act, and a fifth thought it should only be used in "exceptional circumstances." More than one in five businesses thought this would have a big impact on international business relations with the U.S., while one in eight said it had made them more cautious about getting involved in transatlantic business.