EY’s Financial Services Brexit Tracker found that 59 out of the 222 financial services companies it has tracked have said they are moving staff and operations out of the UK or are reviewing their options, up from 53 companies in March 2017.
19 are moving operations and/or staff to Dublin and 18 to Frankfurt.
22 investment banks have declared their intention to move staff or operations, mainly to Frankfurt or Dublin.
151 are silent about the impact that Brexit could have on their domicile or where their major operations and staff are located.
Omar Ali of EY says, “The difference three months on from the triggering of Article 50 is that we are seeing major financial brands put their contingency plans into action – over a quarter of the companies we track have suggested there will be potential changes to their London base as a result of Brexit. This process will only accelerate as firms finalise their submissions to the regulators on their Brexit plans. Financial services companies are looking to make sure they can continue to conduct business across the EU, whilst retaining a strong base in London, and they are now starting to select potential European locations. Frankfurt, Dublin, and Luxembourg are currently coming out on top.”
Dublin’s prime position is thanks to a number of factors including its English-speaking workforce, access to EU markets and competitive tax rates. Despite its high income tax (52%), Dublin’s proximity to London, perfect English language comprehension and more affordable high-end rent prices help.