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he financial world was
thrown into chaos following
the UK’s decision to leave
the European Union on 23 June
last year. The days that followed
were spattered with speculation
on how the unexpected vote would
affect jobs, regulation and the glob-
al macro environment. By far, the
biggest focal point for the financial
ecosphere was - and remains to be
- where banks with London-based
EU hubs will move banking staff to
ensure a presence is sustained in
the European Union.
Straight off the bat, JP Morgan
emerged stating the referendum
could force it to move as many as
4,000 banking roles from London.
An internal memo sent to employ-
ees immediately following the vote
revealed changes to the bank’s
European legal entity structure and
the location of some roles would be
severely affected.
“While these changes are not
certain, we have to be prepared to
comply with new laws as we serve
our clients around the world,” the
memo said.
It has been more than a year since
the referendum and investment
banks and financial services firms
continue to make decisions on
where to move previously Lon-
don-based EU hubs. With Article
50 now triggered, new EU-based
entities are being drawn up across
Europe in capital cities like Paris,
Amsterdam, Dublin and Frankfurt.
It is important to note, not all of
the moves have been confirmed
as discussions with the European
Central Bank, European financial
regulatory authorities and those in
16
TheTrade
Autumn 2017
the US continue and are ongoing.
Nevertheless, it is clear Frankfurt has come
out on top as the destination of choice for
“While these changes are not
certain, we have to be prepared
to comply with new laws as we
serve our clients around the
world.”
JP MORGAN [INTERNAL MEMO]
a significant number of the world’s largest
investment banks. Citigroup, Standard Char-
tered, Deutsche Bank, Morgan Stanley and
Nomura are among those who will relocate
their EU headquarters from London to the
German capital. UBS and Goldman Sachs are
also expected to make the same move.
Closer to home, Bank of America and Bar-
clays have opted for Ireland’s capital as their
new European Union headquarters. Dublin
was immediately tipped to be a popular des-
tination for financial services due to its short
distance from London, regulatory framework,
low tax rates and for the simple fact it is an
English speaking country. In June this year,
the head of international financial services at
Ireland’s Industrial Development Authority,
Kieran Donoghue, claimed in an interview
with a UK national newspaper more than
10 London-based banks will
move at least some of their
operations to Dublin.
For others, Amsterdam
has become the destina-
tion of choice. Financial
services firms like
Tradeweb and Mar-
ketAxess have both
confirmed the es-
tablishment of new
entities in the city.