JP Morgan seeking volunteers for Brexit relocations

JP Morgan has distributed a memo asking “several dozen” of its London-based staff to relocate to its offices elsewhere in Europe, with some of the moves to occur before the end of this year.

JP Morgan in London
The US bank, which employs 16,000 people in the UK, has confirmed it had sent the memo to members of its investment bank and other units including asset management staff, because of continuing fears that the UK and EU will fail to reach Brexit agreement on a mutual banking arrangement.

Post-Brexit fears

According to the memo, the New York-headquartered bank is expanding operations in Madrid, Paris, Milan and “other locations”, in addition to increasing relocations to its existing Dublin, Frankfurt and Luxembourg offices, where it already has banking licenses.The memo, signed by Daniel Pinto, head of JP Morgan’s corporate and investment bank, and Mary Erdoes, the asset management chief, said the bank was looking for several dozen volunteers to “consider relocation from the UK” as part of a plan to “migrate or add” hundreds of employees to its EU offices before the Brexit deadline.“Just as we are working to minimise disruption for our clients, we are looking to do the same for our people,” the memo added.“We want to avoid affecting the lives of employees and their families with changes that could prove to be unnecessary or premature, as long as political negotiations and regulatory outcomes remain unclear.“Before asking other employees to consider relocating, we will wait for further political and regulatory clarity. The timing of these further moves is entirely dependent on whether an agreed transition arrangement is finally confirmed.”
Related stories:For more related news and features, visit our Brexit section.  

The problems facing banks in the UK

Jamie Dimon, JP Morgan CEO and a vocal critic of the ‘leave’ campaign in the run-up to the EU referendum two years ago, told the BBC earlier this year that the bank might cut more than 4,000 jobs from its UK workforce after Brexit if there were no agreement on common banking rules.“If we can’t find reciprocal recognition of rules – and there are a lot of people who are mad with the Brits for leaving and want their pound of flesh – then it could be bad. It could be more than 4,000,” he said.“We love London, we love working there. We’ve got, as you point out, huge efficiencies for us. Huge efficiencies for the eurozone, too. But if they determine that you can’t have reciprocal trade practices and reciprocal regulations, it would be a lot.”Other banks with plans to move UK staff include Goldman Sachs, which is looking to at least double the size of its 200-strong Frankfurt office through a mix of relocations and local hires, while HSBC has said it will move up to 1,000 jobs to Paris.Bank of America Merrill Lynch has announced the relocation of up to 125 UK staff to Dublin, while Morgan Stanley is believed ready to add 200 staff in Frankfurt – again, through a mix of new hires and relocations – and about 80 in its Paris office.Relocate’s new Global Mobility Toolkit provides free information, practical advice and support for HR, global mobility managers and global teams operating overseas.Access hundreds of global services and suppliers in our Online DirectoryClick to get to the Relocate Global Online Directory 

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