Terry Smith, the veteran chief executive of Tullett Prebon, has reiterated his warnings that the UK could face an exodus of talent as a result of tough rules on tax and pay, by saying he is increasingly looking at relocating areas of the broker's business overseas.

In an interview with Financial News, which followed the firm reporting a 10% fall in pretax profits for 2010, Smith said the London-based interdealer broker had recently located its risk management arm in Hong Kong as a result of a favourable tax regime there - and that similar moves could follow.