Over 7,500 jobs in financial services have been relocated out of the UK in preparation for Brexit with £1.2 trillion in assets from 24 financial firms expected to follow, according to the EY Financial Services Brexit Tracker.
The tracker revealed that 400 UK-based financial services jobs relocated in the last quarter alone, taking the total number of jobs leaving the UK since the referendum to over 7,500, EY confirmed in a report.
In the same report, EY predicted that the 24 financial firms that have declared publicly plans to transfer assets out of the UK to Europe will remove assets worth over £1.2 trillion.
EY financial services managing partner Omar Ali commented the rapid transition in the lead up to the final Brexit deadline has not yet been impacted by the COVID-19 pandemic, despite restrictions to the movement of people.
“With the prospect of a deal between the UK and EU still hanging in the balance, many Firms still remain in a ‘wait and see’ mode. The pre-trade agreement, set to be finalised at the end of October, means we could yet see a flurry of further staff and operational announcements in the weeks that follow,” Ali said.
“But the clock is running down, and with the possibility of a second COVID-19 spike threatening cross-border movement in the final three months of the transition period, firms must now ensure that as a minimum they will be operational and can serve clients on the 1st of January 2021.”
The EY Brexit Tracker also found that Dublin remains the most popular destination for staff relocations and new offices, with 34 firms stating they are considering or have confirmed relocating to the Irish capital.
Among the companies that have so far announced new entities in Dublin is Boston-based investment firm Eaton Vance, Liquidnet, DTCC, and Refinitiv, among others.
EY’s report stated that Luxembourg is the second most popular destination and has attracted 26 companies while Frankfurt has seen 23 companies open up shop, 19 of which are universal banks, investment banks, or brokerages.
In Paris, 20 firms have said they are considering or have confirmed relocating to the city, 14 of which are universal banks, investment banks, or brokerages.