Dublin still favourite for financial relocations

There has been a 23% increase since the spring in the number of UK financial services firms relocating to the EU27, according to a new survey.

Dublin riverside at night
New Financial, a think-tank focusing on capital markets, found that, because of Brexit, 332 firms with offices in the UK have now moved part of their business, relocated staff or established new hubs in the EU.The total, which includes 95 asset managers, represents an increase of 63 companies since a previous survey on the impact of Brexit was published in March.New Financial said the majority of new relocations over the past seven months had been made by smaller firms, as most larger institutions had completed their preparations last year.

Which other countries are favoured for financial relocations?

The report found that Dublin had extended its lead as the favoured location for new hubs with a total of 115 firms choosing the Irish capital, an increase of 16 since the March survey and representing almost 30% of all the declared moves.Luxembourg occupied second place on the popularity table after attracting 71 firms, followed by Paris with 69, Frankfurt on 45, and Amsterdam on 40. However, the report found that, since the March survey, Paris had attracted the most summer relocations, with 28 moves.

What will happen in the event of a no-deal Brexit?

William Wright, managing director of New Financial, said that even if the latest Brexit deal is approved by both the UK and EU, he did not expect firms to reverse their relocation decisions.“In the event of 'no deal', we expect the number of staff and assets being moved to the EU to increase quickly and significantly,” he added.“Over time, we expect the headline numbers of firms, staff, and businesses to increase significantly as the dust settles on Brexit, temporary arrangements agreed between the EU and UK expire, and local regulators require firms to increase the substance of their local operations.”Mr Wright said that the scale of Brexit-related relocations was such that “we are close to the point at which firms in the UK have sufficient access to EU customers and markets through local subsidiaries that the future value of equivalence or any other deal is relatively limited”.

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