Brexit Triggers Corporate Relocations
to Defend EU Passporting Rights
Lloyds Heads to Brussels
It is also reported that investment banks JP Morgan and Citigroup are actively exploring relocation of key operations. Another investment bank, Citigroup, has told its staff that some London-based jobs will move overseas due to Britain leaving the EU.
The issue causing the most concern for businesses is the uncertainty over “passporting rights.” Under the existing administration, these enable a financial institution with operations in one EU country to sell into all other EU members without having separate operations there.
In the past, foreign banks have overwhelmingly chosen London for their EU base. But after the UK leaves the EU, under existing rules, they would have to set up subsidiaries in a member country – as would British banks wanting to do business in the EU.
Definitive answers about passporting rights laws won’t be known until the UK actually leaves the EU in two years’ time.
Lloyd’s, the world’s biggest insurance market, confirmed that it will set up a subsidiary in Brussels to allow it to continue underwriting insurance policies across the EU. Lloyds of London’s chief executive Inga Beale stressed that the Brussels office is simply an additional base and the number of jobs affected is fewer than 100.
A number of banks and insurers have already confirmed they could move staff. Goldman Sachs is to move hundreds of bankers to Frankfurt and Paris, while HSBC could switch 1,000 investment banking jobs from London to Paris.
If your company is looking to move employees due to Brexit you’ll want your executives and their families to have access to the best relocation support that’s available.
Saunders 1865 has over 30 years of experience relocating top executives to locations all over the world. Touch base with us to schedule a free consultation with one of our Relocation Experts via our Contact Form to find out how we can be of assistance!