Brexit Financial Services Hit Quantified - EY
(08 October 2020 – United Kingdom) Over 7,500 jobs in financial services have been relocated out of the United Kingdom (UK) in preparation for Brexit with £1.2 trillion in assets from 24 financial services organisations to follow, according to the EY Financial Services Brexit Tracker.
EY forecast that 24 financial firms that have declared publicly plans to transfer assets out of the UK to Europe will remove assets worth over £1.2 trillion. The research found that Dublin is the most popular destination for staff relocations and new offices, with 34 firms stating they are considering or have confirmed relocating to the Irish capital. Luxembourg is the second most popular destination and has attracted 26 companies while Frankfurt has seen 23 companies open up shop, 19 of which are universal banks, investment banks, or brokerages. In Paris, 20 firms have said they are considering or have confirmed relocating to the city, 14 of which are universal banks, investment banks, or brokerages.
“The rapid transition in the lead up to the final Brexit deadline has not yet been impacted by the COVID-19 pandemic, despite restrictions to the movement of people. With the prospect of a deal between the UK and EU still hanging in the balance, many firms still remain in a ‘wait and see’ mode” stated EY Financial Services Managing Partner Omar Ali.
“The pre-trade agreement, set to be finalised at the end of October, means we could yet see a flurry of further staff and operational announcements in the weeks that follow. But the clock is running down, and with the possibility of a second COVID-19 spike threatening cross-border movement in the final three months of the transition period, firms must now ensure that as a minimum they will be operational and can serve clients on the 1st of January 2021” Ali added.
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