Whether there is much of a market for this in the city, and whether the two items that you raise are a problem for the potential participants and their respective HR departments are totally separate issues. I can tell you though that at the events of this nature that I've worked at, the members of the HR department have been no less willing (or reticent) to place their hands on their partner's hip than anyone else. And the men and women display an equal reluctance/eagerness to join in the dancing as each other. So I have at least some idea that these two things that you mention are not a barrier to the holding of this kind of event.
If instead you want to assert that the real reason there aren't 450 such events each weekday across the financial centres of the UK is because of the Corporate Finance department's fear that the moon is made of blue cheese and by dancing they are inviting the falling of this cheese on their heads, however, then you are on safe ground (from me, at least) because on that matter I have no evidence one way or the other.
Well:
A/ I hardly think the City is a bastion of rampant political correctness.
B/ Your argument, taken to extremes, would mean banning all social events on the off-chance that someone might (shock horror) touch someone else. Fortunately, we're not quite that nutty yet.
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