Exodus of post-Brexit bankers from London proves unfounded Business

More bankers remained in London after Brexit than expected, suggesting fears of an exodus from the City were unfounded.

The total number of Brexit-related job relocations from the UK to other parts of Europe since the 2016 referendum now stands at just over 7,000, according to the latest EY data.

It marks a significant reduction from the predicted peak of 12,500 in 2016 and a fraction of some estimates made shortly after the vote.

A 2016 report commissioned by pressure group TheCityUK warned that up to 100,000 financial services jobs could be at risk, while consultancy Oliver Wyman warned of up to 40,000.

In 2018, think tank Bruegel said London could ultimately lose 10,000 banking jobs and 20,000 jobs in the wider financial services sector.

Capital flight out of London has also weakened. While 24 companies have publicly said they will transfer just over £1.3 trillion of UK assets to the EU since the vote, that figure has remained broadly unchanged over the past 18 months, EY said. in its latest Financial Services Brexit Tracker.

The report does not track how many new jobs the City of London has missed due to its new status.

However, it underlines that the worst employment dislocations from the UK’s split with Brussels did not immediately materialize in the Square Mile.

EY’s Omar Ali said: “Most companies completed the majority of essential operational moves well ahead of the Brexit deadline of 2020 and were able to serve customers in the UK and EU without undue disruption.

“Although the numbers have stabilized now, there will remain some fluidity for a few years.”

Dublin remains the most popular destination for new European hubs or offices, with 36 financial services companies announcing plans to relocate their UK operations or staff to the city.

Luxembourg is the second most popular destination, attracting 29 companies in total, followed by Frankfurt with 23 companies and Paris with 21.

In terms of the number of employees attracted, Paris scores the highest with around 2,800 British employees moving to the French capital, followed by Frankfurt with around 1,800 and Dublin with 1,200.

There are also fears that banks could continue to move away from London if the European Central Bank steps up its scrutiny of their presence in the bloc.

Sir Jon Cunliffe, Deputy Governor of the Bank of England, warned earlier this month that the ECB could require some businesses to return to the EU following its ongoing review of booking models and desks bank trading.

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This notice was published: 2022-03-29 07:37:56

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