Main points

• The relationship between the UK’s Overseas Territories (OTs) and London, the metropolitan power, is shaped by many factors. These go beyond purely economic issues. They need to be understood if we are to explain the phenomenon of UK’s offshore financial centres.
• The OTs’ financial services activities operate on a monumental scale and are of global significance. Their impact is clearly adverse to the interests of development, poor people, and good governance.
• The reasons for ‘tolerating’ these activities lie deeply buried in the set of relationships that bind all the OTs to the UK. The answer is not straightforward.