More than 7,500 finance jobs have left Britain for Europe, according to EY Brexit Tracker
LONDON (Reuters) – More than 7,500 finance jobs and a trillion pounds of assets have already left Britain for the European Union as banks prepare for a full Brexit in January, said Thursday the EY consultants.
Banks, insurers and asset managers have opened new or expanded hubs in the EU to continue serving their customers, as future access will be more limited once the transitional arrangements expire on December 31. .
The number of jobs and the amount of assets are still a fraction of the total jobs and assets held by the UK financial sector.
But there could still be a wave of announcements of additional staff and operations in the weeks leading up to the end of the year, said Omar Ali, managing partner of UK financial services at EY.
“Companies now need to ensure that they will be at a minimum operational and can serve their customers on January 1, 2021,” Ali said.
EY said its Brexit Tracker showed companies were also hiring for more than 2,800 new positions in Europe since Britain voted to leave the EU in 2016.
Assets worth over 1.2 trillion pounds ($ 1.55 trillion) owned by EU customers have also been moved from London to the block, where Dublin remains the most popular destination for the new hubs, followed by Luxembourg, Frankfurt and Paris, EY said.
The EU has said it will only offer selective access to the City of London’s range of financial services under its ‘equivalency’ system, under which access is only allowed if UK financial regulation is equivalent to that of the EU.
“The time is now over for companies to rely on short-term equivalency assessments that would align with EU rules, and the industry’s attention is increasingly focused on the prospects for more. long term, âAli said.
The Tracker is monitoring returns from 222 of the largest financial firms that have significant operations in Britain, with the latest data up to September 30.
Reporting by Huw Jones. Editing by Jane Merriman