This week’s UK general election looks unlikely to deliver an overwhelming victory for either the Conservatives or the opposition Labour party — which leaves financial market participants unsure of what political climate they will be facing.

But those preoccupied with the implications of the parties’ differing policies on the economy and EU membership may well be worried about the wrong thing. More important, but less appreciated, are the distinct approaches of the main parties — and their allies in any coalition — towards a financial services industry that has yet to restore its credibility after the global crisis.

Conservative and Labour manifestos propose discrete policies for economic management; yet their ability to implement them is subject to considerable political and economic constraint.