Assets worth 800bn pounds to move from UK to EU
And that would be only the “tip of the iceberg” if there is a no-deal Brexit, EY claimsEuropost
Assets worth nearly £800bn are in the process of shifting from Britain to new financial hubs in the European Union due to upcoming Brexit, consultancy EY announced on Monday. EY has been tracking the Brexit plans of 222 financial firms since the UK voted in June 2016 to leave the bloc. In its latest update to the end of November 2018, it said that 80 firms are considering or have confirmed relocating assets and staff. This means that more than £800bn in assets would move, a fraction of Britain’s 8 trillion pound banking sector.
“The closer we get to 29 March without a deal, the more assets will be transferred and headcount hired locally or relocated,” Omar Ali, UK financial services leader at EY, said, adding that Frankfurt Main Finance, which promotes the German financial centre, expects 750 to 800bn euros of assets to transfer there alone, largely during this quarter. And moves so far would be only the “tip of the iceberg” if there is a no-deal Brexit.
Furthermore, around 2,000 new European roles have been created by financial services companies in response to Brexit, with Dublin, Luxembourg, Frankfurt and Paris the most popular locations. And moves so far would be only the “tip of the iceberg” if there is a no-deal Brexit, Ali said.