Global banks have said they could move thousands of jobs out of Britain to prepare for the expected disruption caused by Brexit, the country’s planned exit from the European Union.
Financial services firms need a regulated subsidiary in an EU country to offer their products across the bloc, and this could lead some to move jobs out of Britain if it loses access to the European single market.
Following are related stories about top banks :
BANK OF AMERICA CORP
Bank of America Corp said in August its businesses and results could be adversely affected and it may have to incur additional costs if Brexit limited the ability of its UK entities to conduct business in the EU.
Dublin is Bank of America’s default option for a new base within the EU, but other centres are on the table and no decision has yet been made, an executive said in Germany on March 14.
Banks in Britain will start shifting some operations to continental Europe reasonably soon to avoid disrupting links with customers after Brexit, Barclays Chief Executive Jes Staley said.
He added that obtaining a licence to trade on the continent and changing financial contracts to another jurisdiction took a year to 18 months.
The bank is preparing to make Dublin its EU headquarters after Brexit, according to a source familiar with the matter.
Staley previously told BBC Radio that Barclays would keep the bulk of its activities in Britain after Brexit and any changes to how the bank operates would be small and manageable.
BNP Paribas may move up to 300 London investment bank staff due to Brexit, depending on how clients adapt and on the French bank’s efforts to win new UK business, a source said.
The firm had 3,123 staff in its corporate and institutional bank in Britain at end-2016, down from 3,294 a year earlier, internal documents seen by Reuters showed.
Citigroup, which has also identified roles that will need to be moved out of the UK and has a large banking unit in Dublin, will need to move 100 posts in its sales and trading business, sources with knowledge of the matter said.
Separately, Citigroup’s European chief said the U.S. bank would make a decision on its Brexit contingency plans in the first half of the year and choose from a number of potential EU countries to relocate some investment banking business.
Credit Agricole, France’s third-biggest listed bank, could relocate about 100 employees from its London hub to France out of 1,000 based there in the case of a “hard” Brexit, its chief executive said.
Credit Suisse’s Chief Executive Tidjane Thiam said in September his bank was relatively well placed to deal with the impact of Brexit and that only around 15-20 percent of volumes in the investment bank would be impacted.
DAIWA SECURITIES GROUP
Japan’s No. 2 brokerage Daiwa Securities Group said it will set up a subsidiary in Frankfurt, making it one of the first banks to publicly chose Germany to keep a foothold in the European Union after Britain leaves the bloc.
The group has said it would still keep staff in London even after Brexit. It has 450 staff working in the EU now, mostly in the British capital.
The German city is Daiwa’s favoured destination, as London-based staff can easily be transferred to its investment banking branch in Frankfurt, Chief Executive Seiji Nakata had previously said.
Deutsche Bank warned on April 26 up to 4,000 UK jobs could be moved to Frankfurt and other locations in the EU as a result of Brexit – the highest potential move of any bank.
European supervisors want Deutsche Bank to prepare a fallback plan, laying out how it could shift the clearing of trades from London, one person with direct knowledge of the matter told Reuters.
Settlement bank Euroclear is looking at the option of setting up a branch or subsidiary to provide a route between its UK and Irish markets following Brexit, the head of its UK and Irish operation said.
U.S. bank Goldman Sachs is considering moving up to 1,000 staff from London to Frankfurt because of concerns over Brexit, Germany’s Handelsblatt newspaper reported in January, citing financial sources.
Goldman Sachs will begin moving hundreds of people out of London before any Brexit deal is struck as part of its contingency plans, the Wall Street firm’s Europe CEO said in March.
Three people familiar with the matter told Reuters in November that Goldman Sachs was considering shifting some of its assets and operations from London to Frankfurt.
HSBC sees the chances of a hard Brexit receding after Britain’s shock election result, which could result in fewer jobs moving out of London, its investment bank chief said.