By Ian McConnell
MORE than one-quarter of UK financial services firms have said publicly Brexit is having a negative impact on their business, or will do so, as the transfer of assets and jobs to continuing European Union member states continues.
The ongoing fall-out from the UK’s departure from the EU is revealed in the latest EY financial services Brexit tracker, published today.
EY highlighted the fact that 43% – 95 out of 222 – financial services firms have stated publicly that they have moved or plan to shift some UK operations and/or staff out of the country to elsewhere in Europe. The accountancy firm said the total number of associated job relocations since the EU referendum had risen to nearly 7,600, from 7,500 in October 2020.
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Fifty-seven out of 222 UK financial services firms, 26%, have stated publicly that Brexit is negatively impacting their business or will do so. This is up from 49 firms in January 2020, EY noted.
EY observed 24 of the largest financial services firms – ten banks, nine insurance providers, and five wealth and asset managers – had “so far transferred or announced an intention to transfer assets out of the UK to [elsewhere in Europe] due to Brexit”. It added: “Not all firms have publicly declared the value of the assets that could be transferred but, of those that have, EY’s financial services Brexit tracker estimates the figure to be almost £1.3 trillion, up from £1.2 trillion in October 2020.”
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EY noted “Dublin, Luxembourg and Frankfurt remain top choices for relocation”.
The firm cited the likelihood of “slower yet ongoing movement of people and assets” from the UK to elsewhere in Europe for compliance purposes, following “significant swathes of asset and job relocation announcements”.
EY added: "Financial services firms across Europe have a number of chapters still to write before they can close the book on Brexit.
"Specific policy work to align the UK and its closest trading partner remains crucial and will be mutually beneficial."
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