This year more than double the number of companies have announced plans to relocate jobs due to Brexit compared to 2016.
Last year 12 financial services firms announced that around 12,500 jobs would move out of the UK as a consequence of Brexit, but while the number of firms has risen to 26, the total number of jobs that could be relocated to the continent by the time Britain leaves the EU in March 2019 has fallen to 10,500.
According to the latest EY Financial Services Brexit Tracker, 68 of the largest financial services companies in the UK have confirmed they are relocating or are considering moving some of their operations and/or staff out of the UK due to Brexit, with Dublin and Frankfurt the most popular destinations.
However, Omar Ali, EY’s UK Financial Services Leader, says the relocations are unlikely to detract from London’s reputation as the financial centre of Europe.
“Firms are working hard to find viable solutions that will allow them to continue to serve their customers and satisfy regulators with the minimum disruption,” he says. “As a result, many of the jobs that are moving are client facing, front office roles to ensure that companies can continue to serve their clients under EU law from day one.
“The extent of broader strategic restructurings and relocation plans will of course ultimately depend on the specifics of any long-term UK deal with the EU, but a drop in the volume of jobs moving will be welcome news for the City. While the relocation of this number of roles will have a significant impact on the smaller financial services centres on the continent, it is unlikely in the short term to threaten London’s role as Europe’s main financial hub.”