$1 Trillion Fleeing London Because of Brexit

In fact, estimates of the withdrawal of companies’ assets in other EU countries will be much higher, analysts say. Waiting for the UK to leave the EU, banks and financial companies have shifted at least £800 billion ($1 trillion) from the country economic operations, personnel and assets of customers.  Interfax writes about this on Tuesday, January 8, citing data from consulting company EY. EY Analysts have tracked 222 of the biggest UK financial services companies since the Brexit referendum in June 2016. The EY study emphasizes that since only public data were used for the calculations, the resulting estimate may turn out to be too conservative, and the actual values ​​will be significantly higher. In addition, not all companies that have published plans to transfer operations from London in connection with Brexit, disclosed data on the value of assets. “This number is still modest given total assets of the UK banking sector alone is estimated to be almost £8 trillion but may become larger as we move towards Brexit”, says the press release. Since the end of November 36% of UK financial services companies tracked have said they are considering or have confirmed relocating operations and/or staff to Europe. This rises to 56% amongst universal banks, investment banks and brokerages, to 44% of wealth and asset managers and 42% of insurers and insurance brokers. Nearly one third (30%) of European roles have been hired locally by financial services companies in response to Brexit, with Dublin, Luxembourg, Frankfurt and Paris the most popular locations. Source: korrespondent