EY’s latest Financial Services Brexit Tracker, published yesterday, found that 43% (95 out of 222) of financial services firms have publicly stated they have moved or plan to move some UK operations and/or staff from the UK to Europe, taking the total number of job relocations since the EU referendum to almost 7,600, up from 7,500 in October 2020.
Dublin remains the most popular choice for UK financial services firms to relocate staff and/or operations to, with 36 firms saying they have confirmed or are considering relocation to the city.
Since the 2016 Referendum, 40% (89 out of 222) of firms have confirmed at least one location in Europe where they are moving to or are considering moving or adding staff and/or operations to, while 12% of firms have confirmed multiple locations in Europe. Of the 36 firms who they have confirmed or are considering relocation to Dublin, nine are universal banks, investment banks and brokerages; 18 are wealth and asset managers; and 6 are insurers or insurance brokers.
After Dublin, Luxembourg is the second most popular destination for financial services firms and has attracted 29 companies in total; 14 are wealth and asset managers and six are universal banks, investment banks or brokerages. Frankfurt has attracted 23 companies in total, 19 of which are universal banks, investment banks or brokerages. Twenty firms say they are considering or have confirmed relocating operations and/or staff to Paris, 14 of which are universal banks, investment banks or brokerages. Other named locations include Madrid (8), Amsterdam (8), Brussels (6) and Milan (5).
Twenty-four of the largest financial services firms (ten banks, nine insurance providers, and five wealth and asset managers) have so far transferred or announced an intention to transfer assets out of the UK to Europe due to Brexit. Not all firms have publicly declared the value of the assets that could be transferred, but of those that have, the EY Financial Services Brexit Tracker estimates the figure to be almost €1.5 trillion, up from almost €1.4 trillion in October 2020.
Commenting on the Tracker, Chief Economist of EY Ireland, Prof Neil Gibson said, "Our data shows that even in the grip of a pandemic, firms are still making decisions to move people and assets to respond to the reshaped geo-political landscape. Sitting atop European charts has become an encouragingly welcome trait for Ireland, with economic growth and tax receipt data likely to mimic its performance in the Tracker."
He added, "Rising costs remain the one potential brake on the positive momentum and this is certainly an angle competitor cities are using to try to compete with Dublin for post-Brexit relocations."
Source: www.businessworld.ie
