Fund managers in London have slashed their hiring by nearly half since the Brexit vote, while recruitment in Paris and Luxembourg has risen, according to new data.
A Financial Times report says data from professional networking site LinkedIn shows the number of London-based investment management job ads posted on its site fell in the first quarter of this year to just under half the number posted in the same period two years ago.
There were nearly six times as many jobs posted in Luxembourg in the final quarter of 2017 as there were in the first three months of 2015, while Paris had more than 10 times as many jobs posted in the first quarter of 2017 compared to the same period two years ago.
At the end of last week there were 1,867 investment management jobs posted in London, 339 in Paris and 278 in Luxembourg.
Deloitte’s asset management consultancy Casey Quirk EMEA head Jonathan Doolan says: “We are seeing a bigger push from UK and US managers to have boots on the ground in Europe. London is not so much being dethroned as diluted.”
The potential loss of passporting rights and changes to delegation rules after Brexit means UK asset management firms could be cut off from their international clients. As a result, many are looking to launch or extend operations elsewhere in the EU.
Freshfields Bruckhaus Deringer fund management specialist Emma Rachmaninov says: “The asset management community is looking at how it accesses the European Economic Area and considering what, if anything, it might need to do should that access change post Brexit.”
Last Friday, UK chancellor Philip Hammond said large investment banks and asset managers had put in place their plans for Brexit, shifting fewer jobs from London initially than originally feared.