Big banks shift just 1,000 jobs since Brexit vote, EY reports
Just 1,000 jobs within the big banks have left the City since Brexit, a new report from EY has found.
According to the accountancy giant, among the large investment banks monitored in its tracker under 1,000 jobs have already relocated to the continent.
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The figure represents 15 per cent of the total volume of investment banking staff currently marked for relocation to Europe from the UK.
“Given that many companies had pulled out all the stops to be ready ahead of the March deadline, much of the planning of temporary solutions for staff and operational moves has already been completed,” said Omar Ali, UK financial services leader at EY.
He added: “Financial services firms have the building blocks in place, but have so far transferred fewer staff and assets to the continent than expected.”
Three years ago consultancy group Oliver Wyman forecasted that roughly 3,500 jobs would be lost even if the UK retained close links to Europe, while a no-deal Brexit could result in as many as 75,000 jobs being lost.
In September, the Reuters survey showed that 5,766 jobs would move if the UK left the EU without a deal, while 10,000 were anticipated in the first survey in September 2017.
But a later survey in February this year showed a significant drop in the number of potential job moves, based on responses from 132 of the biggest or most internationally-focused banks, insurers, asset managers, private equity firms and insurers in the City.
Since Britain voted to leave the EU in 2016, 63 per cent (30 out of 48) of universal banks, investment banks and brokerages have said they are considering or have confirmed relocating operations and/or staff to Europe.
Of all the 222 firms tracked by the Brexit Tracker, just over 40 per cent (92 out of 222) have said publicly that they are considering moving or have confirmed that they are moving some of their operations and/or staff on account of Brexit.
Of these, 30 are universal banks, investment banks or brokerages; 31 are asset managers and 17 are insurers and insurance brokers.
The volume of pronouncements from Financial Services firms on the operational impact of Brexit on their business fell significantly relative to previous quarters according to the EY Brexit Tracker.
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Such a drop suggests that firms in the financial services sector paused or slowed their Brexit preparations after the October extension date was announced.
Ali added: “Over the past three months, financial services have kept relatively quiet on the status of their Brexit plans. Given that many companies had pulled out all the stops to be ready ahead of the March deadline, much of the planning of temporary solutions for staff and operational moves has already been completed.”