JP Morgan moves staff over no-deal fears
Amid mounting fears that the UK will fail to reach a trade deal with the European Union by the time the Brexit transition period ends on December 31, JP Morgan Chase has told about 200 London-based staff that they will have to relocate to offices in Europe.
Related:
"For the moment, JPMorgan is trying to soften the blow. The 200 London-based sales people who move are being offered six months commuting and accommodation allowances, alongside lessons in the French language."Over the summer, the ECB demanded bank chiefs submit “action plans” on how they would make their EU hubs “operationally self-standing in key areas” by the end of the year.In a statement to the Financial Times, the ECB said: “Some banks have substantially reached their target operating model already or are well on track towards that target.“There are other banks that still need to make progress, both in terms of relocating assets and staff. Our joint supervisory teams have engaged with these banks to make sure there is a shared understanding of the path towards the target operating model.”The bank also stressed “this is not about moving assets and staff alone. It is also about aiming to be structurally profitable, being operationally self-standing in key areas and most importantly not excessively reliant on back-to-back booking to the parent”.The newspaper commented that the move by the ECB "to turn the screw on lenders" had angered many in the industry. "Some bankers privately suspect this is a politically motivated way of putting pressure on the UK as trade talks with the EU enter a crucial stage," said the FT.
Read more news and views from David Sapsted.
Subscribe to Relocate Extra, our monthly newsletter, to get all the latest international assignments and global mobility news.Relocate’s new Global Mobility Toolkit provides free information, practical advice and support for HR, global mobility managers and global teams operating overseas.Access hundreds of global services and suppliers in our Online Directory©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.