Brexit sees financial firms fleeing Britain
About 275 financial firms are in the process of transferring a combined $1.2 trillion (€1.06 trillion) worth of funds, assets and staff from Britain to the European Union, according to the report Brexitometer, published by the New Financial think tank.
Although the City of London’s dominant position as a global financial center remains intact, the report highlights that Brexit has forced financial firms to prepare for whatever regulatory environment will emerge between the EU and Britain as Brexit negotiations continue.
The majority of the relocations, numbering at 100, are heading to Dublin, which could become a post-Brexit hub for high-profile asset management firms such as Goldman Sachs and Morgan Stanley Investment Management. Luxembourg was the second-highest on the list with 60 relocations; Paris came in at 41, Frankfurt at 40 and Amsterdam at 32.
The combined cost of conducting the transfers for firms is expected to be around $4 billion (€3.6 billion). The report also estimates 5,000 staff are being moved or hired locally in EU countries in response to Brexit, with this number expected to climb.
Banks and investment banks alone are thought to have transferred nearly £800 billion ($1.3 trillion, €923 billion) in assets out of Britain to the EU, which amounts to 10 percent of total banking assets in Britain.
