A mass exodus from Britain – What an EY report reveals – More similar moves are likely to follow in the coming weeks
Financial services companies operating in the UK have transferred around 7,500 employees and assets worth more than $ 1.6 trillion in the European Union before Brexit – and more similar moves are likely to follow in the coming weeks.
This is revealed by EY. About 400 relocations were announced last month alone, the consulting firm, which monitors 222 of the largest financial companies with significant operations in the UK, said in a report on Thursday. Since Britain voted in favor of leaving the bloc in 2016, 2,850 financial sector jobs have been relocated to the EU, most of them in Dublin, Luxembourg and Frankfurt.
“As we approach the end of the transition period, we see some companies moving into the final phase of Brexit planning, including relocations,” Omar Ali, the UK’s chief financial officer, told EY. “This is despite the pandemic and the consequent restrictions on people’s movements.” Many companies are still on hold and a number of further moves could soon follow, according to Ali.
JPMorgan Chase & Co. transferred both assets and staff in recent weeks, while Goldman Sachs Group Inc. has planned to transfer 100 additional workers to Europe.
The report also noted that up to 24 financial services companies have stated that they will transfer assets outside the UK amid uncertainty about the nature of the City of London’s access to the block.
London, however, still has the lion’s share of the assets of US banks operating in Europe.