Brexit exodus: 7,500 UK finance jobs and £1.2bn of assets transferred to Europe
Banks and businesses preparing for Brexit have moved more than 7,500 finance jobs and over £1 trillion of assets from the UK to Europe, according to a new survey.
Ahead of Britain’s withdrawal from the EU on December 31, EY’s Brexit tracker reveals that more than 400 jobs were advertised in the last quarter.
As the transition period draws to a close, businesses in the City are gearing up to accelerate the “Brexit exodus”, according to the Times. Forecasts of Brexit’s impact on the UK financial services sector have ‘varied considerably’, the document adds, with job losses projected ‘up to 75,000 in the long-term worst case’. .
Omar Ali, UK financial services managing partner at EY, said there could be a “flurry of additional personnel and operations announcements” in the coming weeks.
He added: “Time is running out, and with the possibility of a second peak of Covid-19 threatening cross-border movements in the last three months of the transition period, businesses must now ensure that at a minimum they will be operational and will be able to serve customers on January 1, 2021.”
EY’s Brexit Tracker, which monitors statements from Britain’s biggest financial firms, says firms have taken on more than 2,800 new jobs in Europe since Britain voted to leave the EU in 2016, Reuters reports. .
Meanwhile, assets worth more than £1.2 billion belonging to EU clients have also been transferred from London to the bloc.
As the transition period draws to a close, Sky News says financial firms including banks, insurers and asset managers have “opened up new hubs or expanded existing locations in Europe”.
According to EY, Dublin remains the most popular destination for new hubs, followed by Luxembourg, Frankfurt and Paris.
As banks prepare for a full-scale Brexit in January, the number of jobs and the amount of assets are still only a “fraction” of what the UK financial sector holds, Reuters adds.