Fear of hard brexit international financial institutions move out of London

category:Finance
 Fear of hard brexit international financial institutions move out of London


Financial jobs are also flowing out. According to Ernst & Youngs latest data, more than 7500 financial services jobs have moved from the UK to the EU since the UK referendum decided to leave the EU in 2016, including 400 announced in recent weeks. Compared with the size of the hundreds of thousands of financial workers in London, this is only a small part of its financial services jobs. London is widely expected to remain Europes largest financial centre.

London remains our center and the core of supporting our local and international customers, said Henry Farrant, Citigroups managing director for brexit in EMEA However, since 2016, Citigroup has moved its EU brokerage business from London to Frankfurt and increased its presence in six other European cities.

The future trend should not be underestimated. Some financial executives said that the outflow of jobs in the financial sector after brexit was only the first wave of reshaping the European financial sector dominated by London. According to statistics, since the brexit referendum in 2016, the financial sector jobs of EU member states have increased by nearly 3000, with Dublin, Luxemburg and Frankfurt showing the largest growth.

Meanwhile, Goldman Sachs is moving about 100 employees to the European Union, with 6000 employees in London. Dorothy bleasing, CO head of investment banking at J.P. Morgans EMEA, said at a recent meeting that the bank would initially move about 200 jobs out of London to continental Europe, but more would follow, especially in back office functions such as risk and compliance. However, the novel coronavirus pneumonia infection in Britain and other European countries has recently increased, making the migration plan more complicated.

Earlier, some banks planned to allow employees to travel from London to European offices. However, during the outbreak, European governments introduced restrictions on the flow of personnel, which led to changes in the plan. Another issue that is still under debate is the extent to which EU regulators will tolerate back-to-back bookings, in which a bank obtains a transaction within the EU and then assigns its business to a UK branch. Yves mersch, vice chairman of the ECBs supervisory board, has said reducing back-to-back operations will be a priority for the next step. There are signs that brexit has had a real impact on London. In 2018, two years after the brexit referendum, according to the index of international financial centers compiled by the British think tank Z / yen and the China (Shenzhen) Institute for comprehensive development, Londons position as the worlds first financial center has been snatched away by New York, and has been ranked second in the world since then. Source of this article: Yang Bin, editor in charge of the first finance and Economics_ NF4368

Earlier, some banks planned to allow employees to travel from London to European offices. However, during the outbreak, European governments introduced restrictions on the flow of personnel, which led to changes in the plan. Another issue that is still under debate is the extent to which EU regulators will tolerate back-to-back bookings, in which a bank obtains a transaction within the EU and then assigns its business to a UK branch. Yves mersch, vice chairman of the ECBs supervisory board, has said reducing back-to-back operations will be a priority for the next step.

There are signs that brexit has had a real impact on London. In 2018, two years after the brexit referendum, according to the index of international financial centers compiled by the British think tank Z / yen and the China (Shenzhen) Institute for comprehensive development, Londons position as the worlds first financial center has been snatched away by New York, and has been ranked second in the world since then.