FILE PHOTO: Skyscrapers at sunset in the Financial District of the City of London, UK February 12, 2018. REUTERS / Simon Dawson / File Photo
September 30, 2020
By Huw Jones
LONDON (Reuters) – More than 7,500 financial jobs and £ trillion worth of fortune have already left the UK for the European Union as banks prepare for full Brexit in January, advisors told EY on Thursday.
Banks, insurers and asset managers have opened new or expanded existing hubs in the EU to continue serving their customers, as future access will be more restricted after the transition period expires on December 31st.
The number of jobs and wealth levels still make up a fraction of the total jobs and assets in the UK financial sector.
However, there could be a number of other staff and operational announcements in the weeks leading up to the end of the year, said Omar Ali, managing partner for financial services in the UK at EY.
“Companies now need to ensure that they are at least up and running and ready to serve customers on January 1, 2021,” Ali said.
EY said its Brexit tracker showed that companies have also hired more than 2,800 new roles in Europe since the UK voted to leave the EU in 2016.
EU client assets worth over £ 1.5 trillion ($ 1.55 trillion) have also been moved from London to the block, where Dublin remains the most popular destination for new hubs, followed by Luxembourg, Frankfurt and Paris, said EY.
The EU has announced that, under its “equivalence” system, it will only offer selective access to the financial services of the City of London, to which access is only permitted if UK financial regulations are in line with EU regulations.
“Now is the time for businesses to rely on short-term equivalency assessments based on EU rules, and the sector is increasingly focused on the longer-term outlook,” Ali said.
The tracker monitors statements from 222 of the largest financial firms with significant activity in the UK with the most recent data as of September 30th.
(Reporting by Huw Jones. Editing by Jane Merriman)
This article originally appeared on www.oann.com