The consultants' report, which tracks 222 of the largest financial services firms in Britain, said that, after the March 29 withdrawal date for Brexit was postponed until the end of October, many institutions put their relocation plans on hold.But since Prime Minister Theresa May announced her intention to step down in July, and with the prospect increasing of a no-deal Brexit, banks and other financial sector firms have breathed new life into plans to move posts abroad.

Investment banks expected to move 7,000 jobs

EY said that, so far, investment banks had shifted almost 1,000 jobs to the continent and that the final total was still expected to be about 7,000 – a figure that has held steady for almost a year.“In the last few weeks we have seen some firms restarting their programmes and we expect preparation activity for a no-deal to increase markedly throughout the summer,” said Omar Ali, head of UK financial services at EY.

£1.3 billion relocation costs disclosed so far

Financial firms based in Britain have so far disclosed £1.3 billion in relocation costs, legal advice and contingency provisions, according to EY. Additionally, £2.6 billion has been earmarked for capital injections to scale up new, non-UK headquarters. However, only 13 of the 222 firms being tracked have publicly revealed costs.“So far, only a small proportion of the largest, listed firms have put a number on potential costs, which means this number is likely to be a drop in the ocean as firms prepare to do business post-Brexit,” said Mr Ali.“The financial impact of Brexit is beginning to fall to the bottom line, and firms are now making a direct link between financial performance and the tangible commercial impacts of Brexit.”

Dublin the favourite location for bank moves

Dublin remains the number one location for bank moves, according to the survey, with the appeal of Luxembourg appearing to grow recently.So far, the financial sector has been reluctant to move staff to other EU countries in the hope the UK and EU would reach agreement on a future regulatory system. Instead, in order to minimise disruption, many have asked employees to be ready to move when the implications of a final Brexit deal are revealed on October 31.According to a Financial News report, "J.P. Morgan, for example, has asked 300 employees to sign a contract to be on standby for 'day one of Brexit' and around 75 employees at Credit Suisse are primed for relocation.

Some banks have already implemented Brexit plans

"Others have been quicker to implement their Brexit plans. Bank of America Merrill Lynch has assigned two floors of its new Paris office to sales and trading employees, with fixed income staff moving in one go and equities being transferred gradually. Two hundred people have already moved and a further 200 will arrive by the end of this year. UBS has largely finished its Brexit moves, according to a person familiar with the plans."Goldman Sachs has already transferred around 80 staff to its offices across Europe and is due to open its Frankfurt operation in the autumn. Citigroup kick-started its new office in the German city in March and is expected to relocate around 150 staff, plus another 100 across other European locations."Subscribe to Relocate Extra, our monthly newsletter, to get all the latest international assignments and global mobility news.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 Directory

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