Banks, insurers and money managers are planning to move about 800 billion pounds ($1 trillion) of assets from the U.K. to the rest of Europe as Brexit uncertainty takes its toll, according to a survey conducted by EY, Bloomberg writes.
Consulting firm EY said its estimate may be low, because many firms haven’t publicly declared the value of assets being transferred. According to another group’s estimate, as much as 800 billion euros of balance-sheet assets could move to Frankfurt alone. EY said its “conservative” estimate is based on statements from 20 companies that have announced a transfer of assets out of London.
More than 7,000 jobs could relocate from London soon, EY said, though companies are trying to hire locally because of the costs of moving staff. About 2,000 new roles are being added in Paris, Frankfurt, Dublin and other cities in the European Union by financial firms which so far have been moving only essential staff from London, according to the report.
Big banks late last year started increasing the number of staff moving to Frankfurt as regulators toughened demands for how many people and IT resources should be based in the euro area.