09.11.2018

Banks Will Move Hundreds Of Jobs Due to Brexit

09.11.2018
Shanny Basar

Bankers told a UK parliamentary committee that hundreds of jobs may initially have to move from London as the UK leaves the European Union in March next year.

They added that more jobs may have to move over the longer-term due to Brexit.

The Treasury Committee held a hearing today on the UK’s economic relationship with the European Union ahead of the country leaving the trading bloc. The committee is a cross-party group of Members of Parliament appointed by the UK House Of Commons to scrutinise the Treasury department.

James Bardrick, head of Citi UK and chief executive of Citigroup Global Markets, told the committee that the bank’s contingency plans for Brexit are well advanced, including moving jobs.

Bardrick was a witness before the committee alongside Kevin Wall, chief executive of Barclays Ireland and Mark Garvin, vice chairman of JP Morgan Corporate and Investment Bank. He continued that Citi’s starting point was different to others because 60% of the bank’s European staff were already outside the UK.

Garvin added that in many cases JP Morgan’s planning had “passed the point of no return” according to Parliament Today. He continued that the bank has a centralised model with 16,000 staff in the UK.

The report continued that Wall said Barclays Ireland was currently only planning to move a few hundred roles with minimum disruption.

Brexit will affect infrastructure providers as well as banks and asset managers. This week Aquis Exchange, the UK exchange services group, said it will  launch a new venue in Paris to ensure it can continue providing services across Europe after Brexit.

Alasdair Haynes, CEO of Aquis Exchange, said in a statement: “When Brexit happens, Aquis Exchange will be well positioned to continue its operations in both the UK and across the EU with minimum disruption to members.”

The London Stock Exchange Group and Cboe, the US exchange, are both applying for licences in Amsterdam to set up new offices to serve EU-based clients after Brexit.

Possible deal

Michel Barnier, the EU’s chief negotiator, has said it is possible there could be an agreement on the terms of the UK’s exit by early November.

Dr. Ulrich Stephan, global chief Investment officer of private & commercial clients at Deutsche Bank, said:

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