Japanese banks appear to be edging closer to decisions on where they will relocate staff if Brexit means the UK loses the ‘passporting rights’ that currently enable financial services in London to operate throughout Europe.

Frankfurt could benefit

Nomura, which had been considering moving its European subsidiary to Dublin, now appears to be favouring Frankfurt, according to press reports.Last week, investment bank Daiwa Capital Markets, which had also been considering both Dublin and Frankfurt, declined to comment on reports that it, too, had decided on the latter.Meanwhile, Mitsubishi UFJ and Mizuho are strengthening their operations in Amsterdam, where both hold banking licences that enable them to serve clients throughout the European Union.Nomura, which has 2,500 staff in London (although it is unclear how many would move after Brexit), is said to be leaning towards Frankfurt because of the ability of Bafin, Germany’s financial regulator, to handle complex financial instruments.

Final decision in the summer

For its part, Daiwa is expected to relocate fewer than a quarter of its 400 staff based in London, which will remain its European HQ regardless of the Brexit negotiations. A final decision on a move is expected this summer.A Daiwa spokesman said, “No decisions on either location or timing have been taken with respect to any new EU entity to mitigate the potential impact of Brexit.”

---

Related news:

• Toyota investment "vote of confidence" in UK car industry
• Oxford University: staff planning to leave because of Brexit
• Brexit threatens Pandora's box for business - CBI chief

---

Amsterdam popular choice

Both Mitsubishi and Mizuho appear to favour Amsterdam because of its cheaper rents, moderate taxes and English proficiency, although both companies still need to choose a base for conducting their securities businesses in the EU should London lose its passporting rights.A spokesman for Nomura said, “Nomura has not made any final decision on either location or timings with respect to a new EU entity.“We have been actively planning since before the referendum took place to ensure that we meet the needs of our regional and global clients no matter what the final terms of the UK’s exit from the EU are.“We will be fully prepared to provide a continued, uninterrupted service to our clients by the time the UK exits the EU in 2019.”

A blow for Dublin?

The Irish Independent commented on Tuesday, “A move by Nomura and Daiwa to Germany would be another blow to Dublin’s post-Brexit ambitions just weeks after insurer AIG announced it was setting up an operation in Luxembourg.”IDA Ireland, the agency dedicated to attracting foreign direct investment into the Republic, has held talks over the winter with executives from Japanese financial services firms in a bid to attract them to Dublin and said earlier this year that it had received “a lot of interest”.For related news and features, visit our Brexit section.Access hundreds of global services and suppliers in our Online Directory  Get access to our free Global Mobility Toolkit

©2024 Re:locate magazine, published by Profile Locations, Spray Hill, Hastings Road, Lamberhurst, Kent TN3 8JB. All rights reserved. This publication (or any part thereof) may not be reproduced in any form without the prior written permission of Profile Locations. Profile Locations accepts no liability for the accuracy of the contents or any opinions expressed herein.