Some 275 financial firms are moving nearly £1trillion in assets and funds and thousands of staff from Britain to the rest of the European Union ahead of Brexit at a cost of up to £4 billion, says a new and highly detailed report from the think-tank New Financial, published today,
A summary of the research highlights is here.
The report concludes that even these numbers severely underestimate Brexit's impact on the UK's biggest industry, that Dublin is the big winner so far, with over 100 firms relocating there — and that the damage is already done and can only get worse.
New Financial comments, "The good news is that the contingency planning by banks, exchanges and asset managers — combined with recent agreements between UK and EU regulators — means that the industry is pretty well-prepared for whatever happens between now and March 29th.
"The bad news is that the impact of Brexit is bigger than we expected and we think the report understates the full picture. Many firms will have quietly moved parts of their staff or business below the radar, others will have held off making a formal move — and we think plenty of other firms aren't yet ready.
"And the worse news is that we expect the headline numbers to increase significantly in the next few years as local regulators across the EU require firms to increase the substance of their local operations. We also identified hundreds of firms that we think will have to move something somewhere to retain access to EU markets but which haven't yet done so."