UK Companies Moving Money Because of Brexit
Banks, insurers and money managers are planning to move $1 trillion of assets from the UK to the rest of Europe as Brexit uncertainty take its toll, according to a survey by EY.
EY said that its estimate might be low, as many firms haven’t declared the value of assets being transferred, yet. According to another group’s estimate, as much as 800 billion euros of balance-sheet assets could move to Frankfurt alone. EY said its “conservative” estimate is based on statements from 20 companies that have announced a transfer of assets out of London.
Additionally, more than 7,000 jobs could relocate from London soon, EY said, though companies are trying to hire locally because of the costs of moving staff. About 2,000 new roles are being added in Paris, Frankfurt, Dublin and other cities in the European Union by financial firms which so far have been moving only essential staff from London, according to the report.