Jessica Fino 11 Dec 2017 02:19pm

City jobs exodus on day one of Brexit

Since the referendum vote, 68 financial services companies have confirmed plans to move operations abroad.

According to Big Four firm EY’s financial services Brexit tracker, 10,500 people working in the financial services sector in the UK could see their jobs being moved to Dublin or Frankfurt – two of the most popular relocation destinations.

Many of these jobs include client facing front office roles, with 14 companies specifying these would be the roles they would shift.

So far, 68 companies have considered or confirmed that they will move some of their operations or staff out of the UK because of Brexit, an increase from 12 since last year. However, the number of jobs expected to move is less than last year’s prediction of 12,500.

Of these, 26 are universal banks, investment banks or brokerages, 17 are asset managers, 13 are insurance companies, and 12 are FinTechs, retail banks and private equity houses.

Regarding their chosen cities, 14 have elected Dublin, 12 Frankfurt, 8 Luxembourg and 6 Paris.

Omar Ali, EY’s UK financial services leader, said, “Contingency plans have developed significantly over the last year, putting firms in a stronger position to estimate how many UK jobs they need to move.

“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."

Ali added that the extent of broader strategic restructurings and relocation plans would ultimately depend on the specifics of any long-term UK deal with the EU.

However, he suggested the relocations were unlikely to threaten London’s role as Europe’s main financial hub in the short term.

Of all the 222 largest financial services firms analysed by EY, 42 have confirmed at least one relocation destination in Europe, compared to just eight last year. Moreover, 34 of them have communicated their plans publicly.

The Bank of England has projected that Britain could lose up to 75,000 financial services jobs after Brexit, but this could change depending on the post-Brexit trading relationship agreed during the negotiations.