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And the winner of the Brexit City exodus is….?

CityDublin is the winner of the City’s financial services Brexit relocation plans, according to a report by think tank New Financial.

The paper examines the impact of Brexit on the City and the wider banking and finance industry and finds nearly 275 financial services firms re-located at least part of their business and set up new entities in the EU.

Dublin is the biggest beneficiary of the exodus so far, with 100 relocations, well ahead of Luxembourg, with 60, Paris, 41, Frankfurt, 40, and Amsterdam, 32.

(Relocations: dark blue- asset managers / light blue- investment banks)

Shifting assets

Banks have moved or are moving £800bn of assets, insurance firms are moving tens of millions of pounds and asset managers are moving £65bn of assets from the UK to the EU, according to New Financial estimates.

Firm name Value of assets (£bn) Location
Insurance
Phoenix Life 18 Dublin
Aviva 10 Dublin
AIG 6 Luxembourg
Axa 1 Paris
Royal London 1 Dublin
QBE 1 Brussels
Asset management
M&G 34 Luxembourg
Aberdeen Standard 19
Dublin / Luxembourg
Columbia Threadneedle 7 Luxembourg
First State Investment 4 Dublin

Industry better prepared than governments?

Financial service lobby groups TheCityUK chief executive Miles Celic responds to the report’s findings: “New Financial is right to raise awareness of the impact the current Brexit situation is having on the UK as an international financial centre, as well as to the broader European ecosystem.

“The industry has taken every action it can to look after customers and clients. However, some technical issues are out of our hands and it is vital that politicians say ‘no to no-deal’ if we are to minimise the potential negative impacts to both the UK and the EU.”

Global finance center

Despite the Brexit-related uncertainty, London remains a top location on the global financial services stage.

Z/Yen Partners and the China Development Institute’s bi-annual Global Financial Centres Index published today ranks cities on their competetiveness as financial service centres.

The index is based on data provided by third parties including the World Bank, the Economist Intelligence Unit, the OECD and the United Nations.

London held on to second place this year. New York retained the top spot.

The GFCI25 saw thirteen of the top 15 Western European centres rise in the ratings with particularly strong performances by Monaco, Madrid and Edinburgh. Only Luxembourg and Amsterdam saw modest declines.

The index echoed New Financial’s conclusion on the biggest beneficiary of Brexit: “The centres that are most likely to benefit from Brexit did well, with Zurich, Frankfurt, Paris, and Dublin all gaining ground. Amsterdam was the only centre in Western Europe that dropped more than ten points in the ratings.”

Z/Yen director and the author of the GFCI Mark Yeandle says: “London remains second despite many people predicting that it may fall further. New York is still at the top for now but Hong Kong, Singapore and Shanghai are closing in fast.”

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