More than 440 financial firms have moved thousands of jobs and £ 1 trillion of assets from the UK to the EU because of Brexit, with even more pain to come, according to a new study.

A study by think tank New Financial indicates that Brexit has hit the city of London harder than initially thought and its impact is set to increase.

He revealed that the banks had transferred around £ 900 billion of UK assets, or around 10% of the total assets held by the UK banking system.

Insurance companies and asset managers transferred an additional £ 100 billion.

“The worst news is that this analysis is almost certainly a significant underestimation of the real situation,” the report said. “We are only at the end of the start of Brexit”,

Banks, insurers, pension funds and wealth managers had hoped the UK would guarantee a high level of access to the EU, but the Brexit deal does not cover financial services, the one of the UK’s most lucrative specialties. Brussels has conceded very little ground in discussions of separate agreements for financial services.

“This access is unlikely,” the report said. “So it may be better for the industry to take the Brexit damage on the chin and instead focus on recalibrating the framework in the UK to be more suited to the unique nature of the financial services industry. UK. “

Some 7,400 jobs have left the UK or been created in EU financial centers, according to New Financial’s analysis.

He said the argument about how many jobs has moved so far is a red herring. “The biggest problem is not with jobs leaving the UK, but new jobs in the EU created in the future that might otherwise have been created in the UK.”

The report added: “The change in businesses, assets and legal entities will gradually reduce the UK’s influence in banking and finance in Europe and globally, as a greater proportion of business is allowed and conducted in the EU.

“It could also significantly reduce the UK’s £ 26 billion trade surplus in financial services with the EU, as services that were previously exported from the UK are supplied locally.”

Dublin has won the most financial services business thanks to the Brexit fallout, with 135 companies relocating work there.

The second was Paris with 102 relocations, followed by Luxembourg with 95, Frankfurt 63 and Amsterdam 48.

“We predict that Frankfurt will be the ‘winner’ in terms of long-term assets, and that Paris will ultimately be the biggest beneficiary in terms of jobs,” the report said.

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Source: www.independent.co.uk
This notice was published: 2021-04-16 10:23:41