7,500 UK finance jobs shifted to EU since historic vote, as hard Brexit edges closer
More than 7,500 UK finance jobs have headed for Europe since the 2016 EU referendum, with more relocations expected as City firms edge against a hard Brexit.
In September alone, financial services firms moved more than 400 jobs to financial hubs across the EU, according to a new Ernst & Young report, published earlier this morning.
In addition, more than £1.2 trillion in assets belonging to EU-based clients has since also been moved across the Channel.
More job moves anticipated
More personnel and operational changes are expected in the next three months as banks, insurers, investors and asset managers set up new offices or expand existing hubs ahead of 31 December, when the current transition arrangements between the EU and the UK end.
Omar Ali, UK financial services manager at the professional services giant, said firms are implementing the bulk of their relocation plans.
“As we fast approach the end of the transition period, we are seeing some firms act on the final phases of their Brexit planning, including relocations”, Ali said. He added that even though many companies are still in a wait-and-see mode, “a flurry of further moves” should be expected.
“This is despite the pandemic and consequent restrictions to the movement of people, which is clearly making it harder to relocate people and adds complexity for those who were looking to commute to EU locations”, Ali said.
Most positions shifted since the 2016 vote have gone to Dublin, Luxembourg, Frankfurt and Paris, according to E&Y’s Financial Services Brexit Tracker, which monitors public statements made by 222 of the largest financial services firms that operate within the UK.
City players more vocal
EY further found that, since the start of this year, the number of public announcements from wealth and asset management firms on regulation change post-Brexit has jumped significantly.
As negotiations around a UK-EU deal for financial services enter the final phase, a range of firms publicly adopt a more vocal position on the continued use of several legal and regulatory frameworks.
“As we approach the final deadline, the lack of clarity around future trading agreements is fuelling ongoing debate within the financial services sector”, Ali said.
Existing frameworks
Many City firms argue the UK should continue to adhere to MiFID II-based rules, which provide a legal framework for securities markets, investment intermediaries and trading venues.
Another example is the UCITs framework, the EU directive that allows collective investment schemes to operate freely throughout the EU on the basis of a single authorisation from one member state.
“The time has now passed for firms to rely on short term equivalence assessments that would align to EU rules, and the sector’s attention is increasingly focused on the longer-term outlook”, Ali concluded.
