Assets worth around £1 trillion are moving from London to hubs in the European Union ahead of Brexit, with the number of jobs that could relocate to Europe standing at around 7,000, consultants EY said on Wednesday.
Dublin remains the most popular location for relocation, with Frankfurt, Luxembourg and Paris close behind.
In its latest Brexit Tracker, EY said banks, asset managers and insurers in London are opening or expanding hubs in the EU to avoid disruption from Britain’s departure from the European Union.
EY said that since the EU Referendum, 23 companies monitored have announced a transfer of assets out of UK to Europe.
Not all firms have publicly declared the value of the assets being transferred, but the EY Brexit Tracker has now followed public announcements worth around £1 trillion, up from £800 billion last quarter.
“The number of jobs that could relocate from the UK to Europe in the near future stands at around 7,000, with the number of companies that have confirmed a specific number of potential staff moves increasing 30% to 39 up from 30,” SAID EY.
“Since the EU Referendum, 63% (30 out of 48) of universal banks, investment banks and brokerages have said they are considering or have confirmed relocating operations and/or staff to Europe.
“Dublin remains the most popular location with 28 companies saying they are considering or have confirmed relocating operations and/or staff.
“However, the gap has narrowed between the number of companies confirming Frankfurt (21), Luxembourg (19) and Paris (18).”
Omar Ali, UK Financial Services Leader at EY, said: “Since the referendum, the City has been on the front foot in planning for Brexit.
“In the event the UK leaves the European Union without a deal, financial services firms have plans to mitigate as far as possible the impact on their business and customers.
“But, as the day draws nearer, we need to recognise that there are risks that are out of the sector’s control.
“No financial services businesses can know for sure how a disorderly Brexit will impact them, their clients, people and supply chains or, more broadly, the UK economy.
“As the 29 March draws nearer, companies are reconfirming or revising the statements they have made about the extent of staff and operational changes they are making, but we are not seeing many last-minute surprises — firms are executing their plans as expected.
“The value of assets is creeping up, the number of jobs moving is relatively stable as a total, but we are seeing individual firms reduce the number of staff they are moving, whilst still ensuring they are in a position to serve their end customers.
“Continued uncertainty will undoubtedly lead to more assets and people being transferred from the UK and not necessarily to the EU.”