BlackRock has selected Paris over London as its new base for alternative investment services ahead of Brexit.
In recent months, Paris has stepped up efforts to woo financial firms away from London after the UK quits the EU.
According to a report from the Financial Times, the decision will be seen as a coup for French president Emmanuel Macron who has been trying to convince asset management firms and other financial institutions to move their European operations away from London after Brexit as part of his plan to make Paris Europe’s financial centre.
According to the report, London will remain BlackRock’s main European office and the firm does not plan to relocate staff to Paris.
Last month, BlackRock applied to the French regulator for a licence to set up an alternative investment fund management company.
It also hired Henri Chabadel as chief investment officer for France, Belgium and London, based in Paris.
With nine months to go until the UK leaves the EU, time is running out for fund managers to have their no-deal Brexit contingency plans in place, the Investment Association has warned.
IA chief executive Chris Cummings recently said despite Brexit not happening until next year, for fund managers the deadline is a lot closer.
According to analysis from EY, 22 of the 57 largest fund and wealth managers with significant UK operations have revealed plans to relocate staff or offices after Brexit.
In May, Legal and General Investment Management was given regulatory approval for a new business unit in Dublin as part of a plan to shift part of its operations ahead of Brexit.