Exodus of banking jobs from London to EU slows despite Brexit – EURACTIV.com

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The number of finance jobs transferred from Britain to the European Union due to Brexit is lower than initially forecast despite the transfer of billions of euros in share trading to the bloc and the loss by London most of its access to EU capital markets, EY consultants said on Monday (20 December).

After Britain voted in 2016 to leave the EU, analysts like Oliver Wyman estimated that up to 35,000 or more financial services jobs would leave Britain.

Britain left the EU altogether last December, ending the City of London’s unfettered access to what had been its biggest export customer.

“However, over the past year a number of the largest UK-based investment banks have revised down the number of staff who will transfer to the EU, bringing the current number of Brexit-related move announcements at just under 7,400, down from 7,600 in December 2020,” EY said in its latest Brexit tracker.

This is a small fraction of the 1.1 million people working in the UK financial sector.

There have been around 2,800 new hires in the EU due to Brexit, avoiding the need to move some employees from London, with 2,200 finance jobs also being created in the UK, EY said.

But EU regulators are keeping up the pressure on financial firms to complete moves of staff and operations to the EU that have been delayed by the pandemic, EY added.

The European Central Bank wants to avoid ending up with hubs managed from London.

EY said Dublin and Luxembourg remain the most popular post-Brexit destinations for new EU hubs, although Paris has received the highest number of staff relocations.

Assets worth €1.5 trillion have moved across the Channel to the hubs.

“For many financial services companies, we are still a long way from being completely ‘post-Brexit’,” said Omar Ali, head of financial services for EMEIA at EY.

Brussels has yet to approve a new discussion forum for financial regulators approved in principle last December, seen by industry as key to restoring cross-Channel confidence, although progress has been made on euro clearing.

Miles Celic, chief executive of TheCityUK, which promotes Britain’s overseas financial hub, said it was time to focus on long-term competitive factors.

Britain has started revising UK rules to make London more attractive to international investors and better compete with European hubs like Amsterdam, which overtook the UK capital in January to become Europe’s biggest stock trading hub. Europe.

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