Standard Life warns over UK leaving EU A UK exit from the EU would deal a "very, very substantial blow" to London's standing as a global markets hub and Europe's financial capital, the head of one of the country's top asset managers has warned. Keith Skeoch, chief executive of Standard Life Investments, said in a Financial Times interview that it was "absolutely important that we're at the heart of things and we do our level best to influence the European agenda." His forthright comments point to an increased willingness by senior City figures to speak out in favour of the UK's continued membership of the EU, even at the risk of creating political controversy. They could add to the pressure on the UK's ruling Conservative party, which wants a referendum on the issue. London has faced recent warnings from Japan and Australia that a UK exit would hit its economic standing and cost jobs. Mr Skeoch warned that it was particularly important for the UK to play its role in European policy discussions given the sensitivity of its economy to world capital flows. The only other European country that is more exposed than us is Luxembourg. The UK's exit "could be a very, very substantial blow to London, which remains at the heart of European and global capital markets." In his interview, Mr Skeoch urged regulators and politicians to push for an "equity culture" across Europe, arguing that increased supplies of risk-bearing finance were essential to encourage investment and economic growth over the long term. Europe's economy was far too dependent on bank finance, which lay at the heart of the global economic crisis. He said: "Policy makers need to be thoughtful about the relative cost of debt and equity and the tax advantages of debt relative to equity. We are in danger of seeing a substantial reduction in the supply of funds that provide risk-bearing, loss-absorbing capital. It is absolutely critical to make sure that that is both freely available and appropriately priced to make sure you get the long-term finance for recovery. Mr Skeoch called for measures to boost long-term confidence in financial markets and more risk taking by companies. These could include tax breaks for companies issuing equity to fund capital spending. He also sounded a warning over "contingent convertible," or "coco" bonds, which have been used since the financial crisis as a funding source for banks but which risk losses if the bank's financial health falls below a certain level. "What we don't want is for something to go wrong, confidence to take a hit and have to reinvent this stuff," he said. I call them death-spiral bonds.