London - More than 7,500 jobs and trillions of pounds of assets have been relocated to EU mainlands as the banks prepare for full blown brexit. There are more financial institutions to do more relocations and move assets to more EU hubs, according to EY’s Financial Services Brexit Tracker.
More than 400 relocations were announced in September 2020 alone. A consulting firm reported about 222 firms having significant operations in the UK and planning to move to mainland Europe. The financial industry has added 2,850 positions in the EU, with Dublin, Luxembourg and Frankfurt seeing the biggest gains.
Omar Ali, U.K. financial services managing partner at EY said, “As we fast approach the end of the transition period, we are seeing some firms act on the final phases of their Brexit planning, including relocations,This is despite the pandemic and consequent restrictions to the movement of people.Firms must now ensure that as a minimum they will be operational and can serve clients on the 1st of January 2021, The time has now passed for firms to rely on short term equivalence assessments that would align to EU rules, and the sector’s attention is increasingly focused on the longer-term outlook,” firms are still in wait and see mode due to pandemic.
The report also said that more than 24 financial services will look at the nature of the City of London to continue access to the bloc before planning to move their assets.
Predictions on Brexit’s impact on financial firms could lead to around 75,000 job losses in the worst case in coming months. More transfers are expected in coming months.
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