Dublin secures a Brexit win as City of London hit worse than expected

135 financial firms have shifted activities from London to Dublin
Dublin secures a Brexit win as City of London hit worse than expected

Some 7,400 jobs have moved from the UK or been created at hubs in the EU, including Dublin. File photo: John Coveney

Dublin has emerged the biggest winner due to the relocation of financial activity by British firms as a result of Brexit.

More than 400 financial firms in Britain have shifted activities, staff, and a combined €1.62 trillion in assets to hubs in the European Union due to Brexit, with more pain to come, a study from New Financial think tank said.

Dublin has emerged as the biggest beneficiary with 135 relocations, followed by Paris with 102, Luxembourg 95, Frankfurt 63, and Amsterdam 48.

More relocations than anticipated

Some 7,400 jobs have moved from Britain or been created at new hubs in the EU, the study said. The total of 440 relocations is higher than anticipated and well above the 269 in New Financial's 2019 survey. New Financial believes the real number is well over 500.

"We think it is an underestimate and we expect the numbers to increase over time: we are only at the end of the beginning of Brexit," the study said.

The EU has offered the UK little in the way of direct market access for financial services, which were not included in the bloc's trade deal with the country from January.

"That access is unlikely to be forthcoming, so it is perhaps better for the industry to take the damage from Brexit on the chin and focus instead on recalibrating the framework in the UK so that it is more tailored to the unique nature of the UK financial services industry," the study said.

This redistribution of activity across the EU has wound the clock back by about 20 years.

Banks have moved, or are moving, over £900bn in assets from Britain to the EU, while insurers and asset managers have transferred over £100bn in assets and funds, reducing the UK tax base.

"We expect Frankfurt will be the 'winner' in terms of assets in the longer-term, and that Paris will ultimately be the biggest beneficiary in terms of jobs," the study said.

Amsterdam toppling London as Europe's biggest share trading centre since January has been the most visible sign of Brexit in finance.

• Reuters

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