Movement of financial services firms in the EU to rise

Europe_union_mapBrexit and the expansion of Chinese financial services companies into Europe are said to be driving more firms to relocate or set up subsidiaries within the EU.

Research among 41 investment professionals found 83% said Brexit would be the key driver as UK firms sought EU access.

Significantly, the results were to be unveiled today at a conference in Malta – a financial services centre vying to attract business from banks and asset managers.

Investment management firm MPG and public relations company Citigate Dewe Rogerson found that 83% of respondents said Brexit would drive firms to either re-locate or set up subsidiaries in EU centres over the next three years.

The second biggest driver after Brexit, supported by 54% of respondents, would be Chinese financial services companies becoming stronger and wanting to expand in Europe.

A large amount (60%) also said American firms would make the move.

As well as these factors:

  • 37% said companies from other emerging market countries would seek EU locations
  • 65% said fund managers would be the largest constituents
  • 62% said it would be private banks and wealth managers
  • And 54% said hedge funds

Comprehensive legal and regulatory frameworks, political stability, the tax regime, economic stability and a significant skilled workforce were the most important attractions of a location.

Jeremy Leach, CEO at MPG, said: “Our research suggests that the EU is set for a significant increase in financial services companies already based here moving their head offices or setting up new subsidiary premises and also more companies from elsewhere in the world wanting to expand into the continent.”

©2017 funds europe