ECONOMY

Dublin top Brexit pick for financial firms fleeing UK

Dublin top Brexit pick for financial firms fleeing UK


A total of 28 companies have committed to relocating staff or operations to the capital since the June 2016 referendum
A total of 28 companies have committed to relocating staff or operations to the capital since the June 2016 referendum

Dublin is still the most popular location for financial services firms relocating after Brexit, according to EY’s latest Brexit tracker.

A total of 28 companies have committed to relocating staff or operations to the capital since the June 2016 referendum.

Frankfurt is second most popular with 21, with Luxembourg third on 19 and Paris fourth on 18.

The tracker does not provide detail on the scale of the staff/operations being moved here, but EY estimates that more than £1.1trn of assets could leave the UK.

“The number of jobs that could relocate from the UK to Europe in the near future stands at around 7,000,” the professional services firm said.

According to recent IDA figures, 5,000 jobs from 70 different companies have been committed to Ireland as a whole because of Brexit.

Cormac Kelly, financial services Brexit lead for EY in Ireland, said: “It comes as no surprise that the ongoing political uncertainty surrounding Brexit is continuing to drive organisations to relocate business, people and balance sheet out of London to European centres, specifically Dublin.

“We are seeing this first-hand with the arrival of these firms who are taking new office space and recruiting talent as well as seconding experts from their worldwide offices into high-value, skilled roles in Dublin.

“Much remains to do for these firms, however their plans are well under way – plans which are not easy to reverse, certainly in the near-term. Whatever the political outcome, it is clear that Ireland is becoming a leading hub for financial services in Europe.”

The report also tracks so-called ‘Globally Systemically Important Banks’ (GSIBs). It defines these as “banks whose systemic risk profile is deemed to be of such importance that the bank’s failure would trigger a wider financial crisis and threaten the global economy”.

Ireland comes in third place when it comes to attracting GSIBs, having attracted six here, EY said. Frankfurt, home to the European Central Bank, was first with 12, with Paris second on eight.

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EY Ireland chief economist Prof Neil Gibson said the tracker results were “a reminder that while disruption of any kind is challenging, it also brings with it opportunity.”

He said the results show Dublin is “making the most of its potential”.

Central Bank deputy governor Ed Sibley told the Irish Independent last week that financial firms’ Brexit relocations would likely come in two phases.

After an initial shift by firms copperfastening EU access, a second phase will follow when the nature of Brexit eventually becomes clear.

“We are a long way through the first phase,” Mr Sibley said, saying there had been more than 100 applications to the Central Bank seeking either a fresh authorisation for activity here or an extension to existing authorisations.

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