BlackRock chooses Paris over London for expansion ahead of Brexit

Paris France Eiffel Tower 480BlackRock 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.

Other fund houses, including Columbia Threadneedle and M&G, have made moves to shift EU customer assets from UK Oeic ranges to equivalent funds in Luxembourg Sicav ranges.

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Well it’s their business. I will personally not be buying anything to do with Blackrock though.

  2. Who can blame them? Paris. Wonderful city – La Defence the Canary Wharf of Paris – although a lot nicer.

    It seems that I won’t have problems as I speak French and German as well as English.

    Last one out switch out the light.

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