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UK set to lose 10,500 finance jobs to EU27 by first day of Brexit

Brexit_signsA quarterly survey of financial services jobs in the UK already lost or likely to be lost because of Brexit has found that as many as 10,500 jobs could be relocated to continental Europe by March 2019, when the UK is set to leave the European Union.

The latest EY Financial Services Brexit Tracker concluded that Dublin and Frankfurt are emerging as the most popular relocation destination, as firms prepare to quit London for rival financial centres within the EU.

So far 68 of the largest financial services companies in the UK have said they are considering or have confirmed they will move some of their operations or staff out of the UK as a consequence of Brexit.

While details of the roles to be relocated are yet to be provided, the tracker data found that they are not primarily back office or support functions positions and many are client-facing front office roles.

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.

“While the relocation of this number of roles will have a significant impact on the smaller financial services centres on the continent, it is unlikely in the short-term to threaten London’s role as Europe’s main financial hub.”

Since the UK referendum vote in June 2016, nearly a third of financial services companies in the UK have said publicly that they are considering moving, or have confirmed that they are moving, some of their operations or staff out of the UK.

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

Nearly a fifth (19%) of the 222 companies surveyed have now confirmed at least one relocation destination in Europe.

Dublin and Frankfurt remain the frontrunners in popularity, attracting 14 and 12 companies respectively since the day of the referendum result, the majority of which are asset managers, universal banks, investment banks and brokerages. Luxembourg is the next most popular destination, attracting 8 companies, followed by Paris, attracting 6.

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