London bank job exodus to EU slows despite Brexit



The City of London Financial District can be viewed in London, Great Britain on October 22, 2021. REUTERS / Hannah McKay /

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LONDON, Dec.20 (Reuters) – The number of finance jobs transferred from Britain to the European Union due to Brexit is lower than initially forecast, despite the transfer of billions of euros in trade actions towards the bloc and the loss of most of its access to EU capital markets. , EY consultants said Monday.

After Britain voted in 2016 to leave the EU, analysts like Oliver Wyman estimated that as many as 35,000 or more financial services jobs would leave Britain.

Britain left the EU completely last December, ending the City of London’s unhindered access to what had been its biggest export customer.

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“However, over the past year a number of the largest UK-based investment banks have downgraded the number of employees who will be relocated to the EU, bringing the current number of Brexit-related job change announcements at just under 7,400, up from 7,600 in December 2020, ”EY said in its latest Brexit tracker.

That’s a fraction of the 1.1 million people working in finance.

There have been around 2,800 new hires in the EU due to Brexit, eliminating the need to relocate some staff from London, with 2,200 finance jobs also created in the UK, EY said .

But EU regulators are keeping pressure on financial firms to complete the workforce and operational moves to the EU that have been delayed by the pandemic, EY added.

The European Central Bank wants to avoid ending up with hubs from London.

EY said Dublin and Luxembourg remain the most popular post-Brexit destinations for new EU hubs, although Paris has received the highest number of staff relocations.

Assets worth £ 1.3 trillion have been moved across the Channel to the hubs.

“For many financial services companies, we are still a long way from fully ‘post-Brexit’,” said Omar Ali, EYIA financial services manager at EY.

Brussels has yet to sign a new discussion forum for financial regulators agreed in principle last December, seen by industry as key to restoring cross-Channel confidence, although there has been some progress on clearing of the euro. Read more

Miles Celic, managing director of TheCityUK, which promotes Britain’s financial center abroad, said it was time to focus on long-term competitive factors.

Britain has started revising UK rules to make London more attractive to international investors and better compete with EU hubs like Amsterdam, which overtook the British capital in January to become the world’s largest trading hub in ‘actions in Europe.

($ 1 = 0.7524 pounds)

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Reporting by Huw Jones; edited by David Evans

Our Standards: Thomson Reuters Trust Principles.


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