UK-based banks begin relocating staff because of Brexit

Banks and other financial services firms in the UK are starting to implement Brexit contingency plans to relocate staff to continental Europe, but those saying they intend to move remain in the minority, according to latest EY Brexit Tracker.

More than a quarter of financial institutions will move staff

The tracker monitors 222 financial services in Britain – mainly London – and the latest results show that, so far, more than a quarter have announced they are moving some staff or part of their operations out of the UK, or that they are reviewing their domicile because of Brexit.Although this remains a minority of firms, there has been a 50 per cent increase in those making relocation plans over the past four months.

Investment banks making contingency plans

Among investment banks, 21 of 47 investment banks being monitored said they were actively moving some staff or part of their operations out of the UK, or that they were reviewing their domicile. Ernst & Young said that, in the past two weeks alone, eight major investment banks had given more details on their contingency plans.The problem for most financial services companies is the fear that Brexit will result in the UK losing the 'passporting rights' that currently enable them to trade freely throughout Europe.

Those moving 'still in the minority'

Omar Ali, UK financial services Leader at EY, said, “The number of financial institutions who are publicly committing to concrete action in response to Brexit has increased, but it’s still a minority and is driven by the tight timetable rather than politics.“The more complex the organisation, the longer it is going to take to create workable contingency options, and so investment banks in particular are putting their plans on record.“Notably though, the majority of firms are maintaining their commitment to the UK, and still talking about moving only the resources necessary to maintain a smooth service for their clients.“The variety of locations firms are selecting only confirms the fact that the UK’s financial ecosystem is unique and very hard to replicate in other European jurisdictions.”

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Related news:

• Goldman Sachs eyes possible post-Brexit relocation
• Facebook and Google suggest how UK businesses can prosper post-Brexit
• Tech jobs ‘already relocating abroad’, survey says

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The tracker found that ten of the 47 investment banks had changed their public stance on staffing and operations since the beginning of the year and were now stating that some roles or operations will be moved. Almost a third (15 of the 47) of investment banks still have not made any public pronouncements on post-Brexit plans.In the insurance sector, ten out of the 37 companies tracked, along with 12 out of 52 asset management firms, have publicly announced their intentions to move some of their operations. However, 75 of all the 222 firms being monitored have yet to publicly declare their post-Brexit arrangements.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

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