Relocations rise ahead of Brexit but London will stay ‘dominant’, report finds
More than 330 financial firms have relocated parts of their business ahead of Britain’s imminent departure from the EU, a new report has found.
Hundreds of banks and financial services companies have moved staff or set up new entities in the EU, rising by 23 per cent since a previous report in March.
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The scale of movement away from London suggests that the value of any post-Brexit trade deal may now be “relatively limited”, according to the report released by think tank New Financial.
However, despite warning that relocations would “gradually chip away at the UK’s influence in the banking and finance industry”, New Financial concluded that London will remain the dominant financial centre for Europe for the foreseeable future.
“Firms are keen to keep as much of their business in London as possible and even the biggest relocations represent a maximum of 10 per cent of the headcount at individual firms,” the report found.
Dublin has also extended its lead the “clear winner” in luring away business from the UK since Britain voted to leave the EU, according to the findings.
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Ireland’s capital has seen off other European cities in attracting financial services jobs away from London, with 115 firms choosing Dublin a post-Brexit location (an increase of 16 since the think tank’s previous report in March).
The moves out of the UK cover a wide range of relocations, from an asset management firm setting up a new authorised entity in Luxembourg to a bank like Barclays moving £160bn of assets to Dublin.