JP Morgan shifts Paris jobs back to London in Brexit shake-up
JP Morgan is relocating a number of roles at its Paris hub to London in a rethink of policies introduced in the wake of Brexit.
The Wall Street titan is shifting a handful of trading roles to London after over-estimating the number of EU-based staff it would need to meet post-Brexit rules.
Along with EU rules, the banks decision also stems from role changes and personal tax considerations, according to Bloomberg, who first reported the news.
“Paris is the home of JP Morgan’s EU Sales and Trading team, and we are committed to our sizeable operations on the continent for the long term,” a JP Morgan spokesperson said.
Britain’s exit from the EU prompted a major shake-up across global banks, who had to relocate a raft of assets and jobs to comply with regulatory demands in different jurisdictions as well as to retain client access.
JP Morgan was among the highest mover of staff to Paris in the Brexit fallout. The bank’s top boss Jamie Dimon – well-regarded as the world’s most influential banker – was awarded France’s Legion d’Honneur following the bank’s Paris pursuits, which bolstered its standing as a financial sector.
The bank late last year recorded around 1,000 employees based out of France with 650 coming from the market side.
JP Morgan’s London office plans face tax question
The influx of roles to the UK comes amid JP Morgan’s plans for a 3m square feet tower in Canary Wharf.
The tower was announced in the aftermath of the Autumn Budget, where banks dodged a highly-speculated tax raid.
Rachel Reeves touted the investment as a “multi-billion pound vote of confidence in the UK economy”.
The project is expected to inject as much as £10bn into the economy and create an additional 7,800 jobs across construction and other local industries. Once finished it will house up to 12,000 and serve as the bank’s main headquarters in UK and is biggest presence across Europe, the Middle East and Africa.
But the bank has continued to warn the skyscraper would only go ahead should the government maintain a favourable tax environment.
A report from Tower Hamlets local council revealed JP Morgan had lobbied for a “business rates incentive over a period of years”.
The government has also warned the local authority that the bank was “unlikely to progress” on the new tower “without clarity and certainty” on its tax bill.